10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended          June 30, 2016

OR

☐  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                 to

Commission file number 0-27782

Dime Community Bancshares, Inc.

(Exact name of registrant as specified in its charter)

Delaware	11-3297463
(State or other jurisdiction of incorporation or organization)	(I.R.S. employer identification number)
209 Havemeyer Street, Brooklyn, NY	11211
(Address of principal executive offices)	(Zip Code)

(718) 782-6200

(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all the reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

YES  ☒          NO  ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

YES   ☒          NO  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

LARGE ACCELERATED FILER  ☐ ACCELERATED FILER  ☒ NON -ACCELERATED FILER  ☐ SMALLER REPORTING COMPANY  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

YES  ☐          NO  ☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Classes of Common Stock	Number of Shares Outstanding at August 9, 2016
$.01 Par Value	37,786,988

		Page
	PART I – FINANCIAL INFORMATION
Item 1.	Unaudited Condensed Consolidated Financial Statements
	Consolidated Statements of Financial Condition at June 30, 2016 and December 31, 2015	3
	Consolidated Statements of Income for the Three-Month and Six-Month Periods Ended June 30, 2016 and 2015	4
	Consolidated Statements of Comprehensive Income for the Three-Month and Six-Month Periods Ended June 30, 2016 and 2015	4
	Consolidated Statements of Changes in Stockholders' Equity for the Six Months Ended June 30, 2016 and 2015	5
	Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2016 and 2015	6
	Notes to Unaudited Condensed Consolidated Financial Statements	7-29
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	30-44
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	44-45
Item 4.	Controls and Procedures	46
	PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	46
Item 1A.	Risk Factors	46
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	46
Item 3.	Defaults Upon Senior Securities	46
Item 5.	Other Information	46
Item 6.	Exhibits	47-48
	Signatures	49

This Quarterly Report on Form 10-Q contains a number of forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act").  These statements may be identified by use of words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "seek," "may," "outlook," "plan," "potential," "predict," "project," "should," "will," "would" and similar terms and phrases, including references to assumptions.

Forward-looking statements are based upon various assumptions and analyses made by Dime Community Bancshares, Inc. (the "Holding Company," and together with its direct and indirect subsidiaries, the "Company") in light of management’s experience and its perception of historical trends, current conditions and expected future developments, as well as other factors it believes appropriate under the circumstances. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors (many of which are beyond the Company’s control) that could cause actual conditions or results to differ materially from those expressed or implied by such forward-looking statements. These factors include, without limitation, the following:

· the timing and occurrence or non-occurrence of events may be subject to circumstances beyond the Company’s control;

· there may be increases in competitive pressure among financial institutions or from non-financial institutions;

· the net interest margin is subject to material short-term fluctuation based upon market rates;

· changes in deposit flows, loan demand or real estate values may adversely affect the business of The Dime Savings Bank of Williamsburgh (the "Bank");

· changes in accounting principles, policies or guidelines may cause the Company’s financial condition to be perceived differently;

· changes in corporate and/or individual income tax laws may adversely affect the Company's business or financial condition;

· general economic conditions, either nationally or locally in some or all areas in which the Company conducts business, or conditions in the securities markets or the banking industry may be less favorable than the Company currently anticipates;

· legislation or regulatory changes may adversely affect the Company’s business;

· technological changes may be more difficult or expensive than the Company  anticipates;

· success or consummation of new business initiatives may be more difficult or expensive than the Company anticipates;

· litigation or other matters before regulatory agencies, whether currently existing or commencing in the future, may delay the occurrence or non-occurrence of events longer than the Company anticipates; and

· The risks referred to in the section entitled "Risk Factors."

The Company has no obligation to update any forward-looking statements to reflect events or circumstances after the date of this document.

2

Item 1. Condensed Consolidated Financial Statements

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED)

(Dollars in thousands except share amounts)

	June 30, 2016			December 31, 2015
ASSETS:
Cash and due from banks	$	89,927		$	64,154
Total cash and cash equivalents		89,927			64,154
Investment securities held-to-maturity (estimated fair value of $6,805 and $7,051 at June 30, 2016 and December 31, 2015, respectively)(fully unencumbered)		5,319			5,242
Investment securities available-for-sale, at fair value (fully unencumbered)		3,837			3,756
Mortgage-backed securities available-for-sale, at fair value (fully unencumbered)		406			431
Trading securities		6,814			10,201
Loans:
Real estate, net		5,206,781			4,695,186
Consumer loans		2,336			1,590
Less allowance for loan losses		(18,909	)		(18,514	)
Total loans, net		5,190,208			4,678,262
Premises and fixed assets, net		13,800			15,150
Premises held for sale		1,379			8,799
Federal Home Loan Bank of New York ("FHLBNY") capital stock		52,814			58,713
Other real estate owned ("OREO")		18			148
Bank Owned Life Insurance ("BOLI")		85,197			85,019
Goodwill		55,638			55,638
Other assets		50,840			47,359
Total Assets	$	5,556,197		$	5,032,872
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Due to depositors:
Interest bearing deposits	$	3,518,631		$	2,925,129
Non-interest bearing deposits		261,635			259,181
Total deposits		3,780,266			3,184,310
Escrow and other deposits		92,290			77,130
FHLBNY advances		1,017,125			1,166,725
Trust Preferred securities payable		70,680			70,680
Other liabilities		46,225			40,080
Total Liabilities		5,006,586			4,538,925
Commitments and Contingencies
Stockholders' Equity:
Preferred stock ($0.01 par, 9,000,000 shares authorized, none issued or outstanding at June 30, 2016 and December 31, 2015)		-			-
Common stock ($0.01 par, 125,000,000 shares authorized, 53,520,581 shares and 53,326,753 shares issued at June 30, 2016 and December 31, 2015, respectively, and 37,654,771 shares and 37,371,992 shares outstanding at June 30, 2016 and December 31, 2015, respectively)		535			533
Additional paid-in capital		266,984			262,798
Retained earnings		502,569			451,606
Accumulated other comprehensive loss, net of deferred taxes		(8,803	)		(8,801	)
Unallocated common stock of Employee Stock Ownership Plan ("ESOP")		(2,198	)		(2,313	)
Unearned Restricted Stock Award common stock		(2,754	)		(2,271	)
Common stock held by Benefit Maintenance Plan ("BMP")		(9,576	)		(9,354	)
Treasury stock, at cost (15,865,810 shares and 15,954,761 shares at June 30, 2016 and December 31, 2015, respectively)		(197,146	)		(198,251	)
Total Stockholders' Equity		549,611			493,947
Total Liabilities And Stockholders' Equity	$	5,556,197		$	5,032,872

See notes to unaudited condensed consolidated financial statements.

3

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(Dollars in thousands except per share amounts)

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016		2015
Interest income:
Loans secured by real estate	$	47,358		$	43,473		$	93,009	$	85,261
Other loans		24			24			48		48
Mortgage backed securities		2			2			4		183
Investment securities		265			121			438		290
Federal funds sold and other short-term investments		721			578			1,382		1,228
Total interest  income		48,370			44,198			94,881		87,010
Interest expense:
Deposits and escrow		7,597			5,670			14,391		10,890
Borrowed funds		5,163			5,458			10,249		12,956
Total interest expense		12,760			11,128			24,640		23,846
Net interest income		35,610			33,070			70,241		63,164
Provision (credit) for loan losses		442			(1,135	)		421		(1,307	)
Net interest income after provision (credit) for loan losses		35,168			34,205			69,820		64,471
Non-interest income:
Service charges and other fees		758			799			1,443		1,549
Net mortgage banking income		27			41			55		113
Net gain (loss) on securities and other assets		33			(25	)		79		1,425
Net gain on the sale of premises held for sale		(4	)		-			68,183		-
Income from BOLI		1,043			611			1,603		1,216
Other		448			251			683		675
Total non-interest income		2,305			1,677			72,046		4,978
Non-interest expense:
Salaries and employee benefits		8,686			8,600			17,516		14,499
Stock benefit plan amortization expense		846			940			1,724		1,882
Occupancy and equipment		3,115			2,490			5,742		5,434
Data processing costs		1,256			877			2,451		1,752
Federal deposit insurance premiums		581			576			1,320		1,127
Other		3,608			2,883			7,208		5,536
Total non-interest expense		18,092			16,366			35,961		30,230
Income before income taxes		19,381			19,516			105,905		39,219
Income tax expense		8,173			7,987			44,660		15,912
Net income	$	11,208		$	11,529		$	61,245	$	23,307
Earnings per Share:
Basic	$	0.30		$	0.32		$	1.67	$	0.65
Diluted	$	0.30		$	0.32		$	1.67	$	0.64

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

(Dollars in thousands)

Net Income	$	11,208		$	11,529		$	61,245		$	23,307
Amortization and reversal of net unrealized loss on securities transferred from available-for-sale to held-to-maturity, net of deferred tax expense of $6 and $10 during the three months ended June 30, 2016 and 2015, respectively, and $11 and $21 during the six months ended June 30, 2016 and 2015, respectively		8			12			14			25
Reduction in (adjustment to) non-credit component of other than temporary impairment (“OTTI”), net of deferred tax expense (benefit) of $4 and $(16) during the three months ended June 30, 2016 and 2015, respectively, and $8 and $(12) during the six months ended June 30, 2016 and 2015, respectively		4			(19	)		8			(15	)
Reclassification adjustment for securities sold during the period, net of income tax expense (benefit) of $2 during the three months ended June 30, 2015 and $(624) during the six months ended June 30, 2015 (reclassified from net gain on securities)		-			2			-			(760	)
Net unrealized securities gains (losses) arising during the period, net of deferred tax expense (benefit) of $21 and $(2) during the three months ended June 30, 2016 and 2015, respectively, and $28 and $15 during the six months ended June 30, 2016 and 2015, respectively		26			(4	)		34			20
Net unrealized derivative liability loss arising during the period, net of deferred tax benefit of $431 during both the three  and six month periods ending June 30, 2016		(526	)		-			(526	)		-
Change in pension and other postretirement obligations, net of deferred tax expense (benefit) of $191 and $210 during the three months ended June 30, 2016 and 2015, respectively, and $382 and $(58) during the six months ended June 30, 2016 and 2015, respectively		234			257			468			(72	)
Comprehensive Income	$	10,954		$	11,777		$	61,243		$	22,505

See notes to unaudited condensed consolidated financial statements.

4

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (UNAUDITED)

(Dollars in thousands)

	Six Months Ended June 30,
	2016			2015
Common Stock (Par Value $0.01):
Balance at beginning of period	$	533		$	529
Shares issued in exercise of options		2			3
Balance at end of period		535			532
Additional Paid-in Capital:
Balance at beginning of period		262,798			254,358
Stock options exercised		2,756			4,053
Excess tax benefit related to stock benefit plans		142			204
Amortization of excess fair value over cost – ESOP stock and stock options expense		561			541
Release from treasury stock for equity awards, net of return of shares to treasury for forfeited shares		727			481
Balance at end of period		266,984			259,637
Retained Earnings:
Balance at beginning of period		451,606			427,126
Net income for the period		61,245			23,307
Cash dividends declared and paid		(10,282	)		(10,098	)
Balance at end of period		502,569			440,335
Accumulated Other Comprehensive Loss, Net of Deferred Taxes:
Balance at beginning of period		(8,801	)		(8,547	)
Other comprehensive loss recognized during the period, net of tax		(2	)		(802	)
Balance at end of period		(8,803	)		(9,349	)
Unallocated Common Stock ofESOP:
Balance at beginning of period		(2,313	)		(2,545	)
Amortization of earned portion of ESOP stock		115			116
Balance at end of period		(2,198	)		(2,429	)
Unearned Restricted Stock Award Common Stock:
Balance at beginning of period		(2,271	)		(3,066	)
Amortization of earned portion of restricted stock awards		828			985
Release from treasury stock for equity awards, net of return of shares to treasury for forfeited shares		(1,311	)		(1,084	)
Balance at end of period		(2,754	)		(3,165	)
Common Stock Held by BMP:
Balance at beginning of period		(9,354	)		(9,164	)
Award distribution		1			-
Release from treasury stock for equity awards, net of return of shares to treasury for forfeited shares		(223	)		(190	)
Balance at end of period		(9,576	)		(9,354	)
Treasury Stock, at cost:
Balance at beginning of period		(198,251	)		(198,966	)
Treasury shares repurchased (20,000 shares during the six months ended June 30, 2015)		-			(300	)
Release from treasury stock for equity awards, net of return of shares to treasury for forfeited shares		1,105			1,006
Balance at end of period		(197,146	)		(198,260	)
TOTAL STOCKHOLDERS' EQUITY AT THE END OF PERIOD	$	549,611		$	477,947

See notes to unaudited condensed consolidated financial statements.

5

DIME COMMUNITY BANCSHARES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(Dollars in thousands)

	Six Months Ended June 30,
	2016			2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	61,245		$	23,307
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Net gain on investment and mortgage backed securities sold		-			(1,384	)
Net gain recognized on trading securities		(39	)		(41	)
Net gain on the sale of OREO		(40	)		-
Net gain on sale of premises held for sale		(68,183	)		-
Net depreciation, amortization and accretion		1,086			1,602
Stock plan compensation (excluding ESOP)		943			1,015
ESOP compensation expense		561			627
Provision (Credit) for loan losses		421			(1,307	)
Increase in cash surrender value of BOLI		(1,119	)		(1,216	)
Income recognized from mortality benefit on BOLI		(484	)		-
Deferred income tax provision (credit)		615			(76	)
Reduction in credit related OTTI amortized through interest income		(52	)		-
Excess tax benefit from stock benefit plans		(142	)		(204	)
Changes in assets and liabilities:
Increase in other assets		(4,094	)		(784	)
Increase (Decrease) in other liabilities		6,038			(425	)
Net cash (used in) provided by Operating activities		(3,244	)		21,114
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities of investment securities held-to-maturity		-			127
Proceeds from sales of investment securities available-for-sale		-			2,070
Proceeds from the sales of trading securities		3,648			1,337
Proceeds from sales of mortgage backed securities available for sale		-			24,307
Purchases of investment securities available-for-sale		(19	)		(2,021	)
Acquisition of trading securities		(222	)		(1,514	)
Principal collected on mortgage backed securities available-for-sale		25			1,577
Proceeds from the sale of loans held for sale previously classified as portfolio loans		-			9,201
Purchases of loans		(152,637	)		-
Loans originated, net of repayments		(359,730	)		(195,320	)
Proceeds from sale of OREO		170			-
Proceeds from surrender of cash surrender value of BOLI		1,425			-
Net proceeds from the sale of premises held for sale		75,899			-
Purchases of fixed assets		(16	)		(456	)
Redemption of FHLBNY capital stock		5,899			5,679
Net cash used in Investing Activities		(425,558	)		(155,013	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in due to depositors		595,956			274,015
Increase (decrease) in escrow and other deposits		15,160			(4,682	)
Repayments of FHLBNY advances		(2,402,500	)		(918,000	)
Proceeds from FHLBNY advances		2,252,900			778,000
Proceeds from exercise of stock options		2,900			4,056
Excess tax benefit from stock benefit plans		142			204
Release of stock for benefit plan awards		299			213
Treasury shares repurchased		-			(300	)
Cash dividends paid to stockholders		(10,282	)		(10,098	)
Net cash provided by Financing Activities		454,575			123,408
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		25,773			(10,491	)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD		64,154			78,437
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	89,927		$	67,946
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for income taxes	$	29,100		$	17,559
Cash paid for interest		11,770			24,071
Loans transferred to OREO		-			130
Transfer of premises to held for sale		1,379			8,799
Loans transferred to held for sale		-			9,534
Amortization of unrealized loss on securities transferred from available-for-sale to held-to-maturity		25			47
Net (increase) decrease in non-credit component of OTTI		16			(27	)

See notes to unaudited condensed consolidated financial statements.

6

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

(Dollars in Thousands Except Per Share Amounts)

1. NATURE OF OPERATIONS

The Holding Company is a Delaware corporation and parent company of the Bank, a New York State chartered stock savings bank. The Holding Company's direct subsidiaries are the Bank, 842 Manhattan Avenue Corp., and Dime Community Capital Trust 1.  The Bank's direct subsidiaries are Boulevard Funding Corp., Dime Insurance Agency Inc., DSBW Preferred Funding Corporation, DSBW Residential Preferred Funding Corp., Dime Reinvestment Corp., 195 Havemeyer Corp. and DSB Holdings NY, LLC.

The Bank maintains its headquarters in the Williamsburg section of Brooklyn, New York and operates twenty-five full service retail banking offices located in the New York City ("NYC") boroughs of Brooklyn, Queens, and the Bronx, and in Nassau County, New York.  The Bank’s principal business is gathering deposits from customers within its market area and via the internet, and investing them primarily in multifamily residential, commercial real estate and mixed used loans, as well as mortgage-backed securities ("MBS"), obligations of the U.S. Government and Government Sponsored Enterprises ("GSEs"), and corporate debt and equity securities.  All of the Bank's lending occurs in the greater NYC metropolitan area.

2. SUMMARY OF ACCOUNTING POLICIES

In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary for a fair presentation of the Company's financial condition as of June 30, 2016 and December 31, 2015, the results of operations and statements of comprehensive income for the three-month and six-month periods ended June 30, 2016 and 2015, and the changes in stockholders' equity and cash flows for the six-month periods ended June 30, 2016 and 2015.  The results of operations for the three-month and six-month periods ended June 30, 2016 are not necessarily indicative of the results of operations for the remainder of the year ending December 31, 2016.  Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been omitted pursuant to the rules and regulations of the U. S. Securities and Exchange Commission ("SEC').

The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Please see "Part I - Item 2.  Management's Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies" for a discussion of areas in the accompanying unaudited condensed consolidated financial statements utilizing significant estimates.

These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2015 and notes thereto.

3. RECENT ACCOUNTING PRONOUNCEMENTS

In January 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-01, an amendment to Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10). The objectives of the ASU are to: (1) require equity investments to be measured at fair value, with changes in fair value recognized in net income, (2) simplify the impairment assessment of equity investments without readily determinable fair values, (3) eliminate the requirement to disclose methods and significant assumptions used to estimate fair value for financial instruments measured at amortized cost on the balance sheet, (4) require the use of the exit price notion when measuring the fair value of financial instruments, and (5) clarify the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The amendments in this ASU are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. The Company is evaluating the potential impact of ASU 2016-01 on its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 requires companies that lease valuable assets to recognize on their balance sheets the assets and liabilities generated by contracts longer than a year. The amendments in this update are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018, however, early adoption is permitted. The Company is evaluating the potential impact of ASU 2016-02 on the its consolidated financial statements.

7

In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal Versus Agent Consideration - Reporting Revenue Gross Versus Net. The objective of the ASU is to align the recognition of revenue with the transfer of promised goods or services provided to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments in this ASU are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. The Company is evaluating the potential impact on its consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The objectives of the ASU are to simplify accounting for the tax consequences of a stock payment and amend the manner in which excess tax benefits and a business's payments to satisfy the tax obligation for recipients of the shares should be classified. The amendments: (i) allow companies to estimate the number of stock awards they expect to vest, and (ii) revise the withholding requirements for classifying stock awards as equity. The amendments in this ASU are effective for public companies for fiscal years beginning after December 15, 2016, however, early adoption is permitted. The adoption of ASU 2016-09 is not expected to have a material impact on the Company's consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-013, “Financial Instruments – Credit Losses (Topic 326)”, which requires the measurement of all expected credit losses for financial assets held at the reporting date be based on historical experience, current condition, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates.  This guidance also amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. For the Company, this guidance is effective for fiscal years and interim periods beginning after December 31, 2019. The Company is currently evaluating this guidance to determine the impact on its consolidated financial statements.

4. TREASURY STOCK

The Holding Company did not repurchase any of its common stock into treasury during the three or six month periods ended June 30, 2016, or the three-month period ended June 30, 2015.  The Holding Company repurchased 20,000 shares of its common stock into treasury during the six months ended June 30, 2015 at a weighted average cost of $15.00 per share.

On March 24, 2016, 28,044 shares of the Holding Company's common stock were released from treasury in order to satisfy potential future performance-based equity awards.  The closing price of the Holding Company's common stock on that date was $17.35, and the shares were released utilizing the average historical cost method.

On April 29, 2016, 60,675 shares of the Holding Company's common stock were released from treasury in order to fulfill benefit obligations under the 2013 Equity and Incentive Plan, and 12,424 shares of treasury stock were released in order to fulfill benefit obligations under the BMP.  The closing price of the Holding Company's common stock on that date was $18.11, and the shares were released utilizing the average historical cost method.

Shares either released from treasury stock for earned equity awards or returned to treasury stock due to forfeited equity awards were otherwise immaterial during the three-month and six-month periods ended June 30, 2016 and 2015.

8

5. OTHER COMPREHENSIVE INCOME (LOSS)

The before and after tax amounts allocated to each component of other comprehensive income (loss) are presented in the table below.  Reclassification adjustments related to securities available-for-sale are included in the line entitled net gain (loss) on securities and other assets in the accompanying condensed consolidated statements of income.

	Pre-tax Amount			Tax Expense (Benefit)			After tax Amount
Three Months Ended June 30, 2016
Securities held-to maturity and transferred securities:
Change in non-credit component of OTTI	$	8		$	4		$	4
Change in unrealized loss on securities transferred to held-to-maturity		14			6			8
Total securities held-to-maturity and transferred securities		22			10			12
Securities available-for-sale:
Change in net unrealized gain during the period		47			21			26
Total securities available-for-sale		47			21			26
Defined benefit plans:
Reclassification adjustment for expense included in salaries and employee benefits expense		425			191			234
Total defined benefit plans		425			191			234
Derivatives:
Change in unrealized loss on derivative liability		(957	)		(431	)		(526	)
Total derivatives		(957	)		(431	)		(526	)
Total other comprehensive (loss)	$	(463	)	$	(209	)	$	(254	)
Three Months Ended June 30, 2015
Securities held-to-maturity and transferred securities:
Change in non-credit component of OTTI	$	(35	)	$	(16	)	$	(19	)
Change in unrealized loss on securities transferred to held-to-maturity		22			10			12
Total securities held-to-maturity and transferred securities		(13	)		(6	)		(7	)
Securities available-for-sale:
Reclassification adjustment for net gains included in net gain (loss) on securities and other assets		4			2			2
Change in net unrealized gain during the period		(8	)		(4	)		(4	)
Total securities available-for-sale		(4	)		(2	)		(2	)
Defined benefit plans:
Reclassification adjustment for expense included in salaries and employee benefits expense		467			210			257
Total defined benefit plans		467			210			257
Total other comprehensive income	$	450		$	202		$	248

	Pre-tax Amount			Tax Expense (Benefit)			After tax Amount
Six Months Ended June 30, 2016
Securities held-to maturity and transferred securities:
Change in non-credit component of OTTI	$	16		$	8		$	8
Change in unrealized loss on securities transferred to held-to-maturity		25			11			14
Total securities held-to-maturity and transferred securities		41			19			22
Securities available-for-sale:
Change in net unrealized gain during the period		62			28			34
Total securities available-for-sale		62			28			34
Defined benefit plans:
Reclassification adjustment for expense included in salaries and employee benefits expense		850			382			468
Total defined benefit plans		850			382			468
Derivatives:
Change in unrealized loss on derivative liability		(957	)		(431	)		(526	)
Total derivatives		(957	)		(431	)		(526	)
Total other comprehensive loss	$	(4	)	$	2		$	(2	)
Six Months Ended June 30, 2015
Securities held-to-maturity and transferred securities:
Change in non-credit component of OTTI	$	(27	)	$	(12	)	$	(15	)
Change in unrealized loss on securities transferred to held-to-maturity		46			21			25
Total securities held-to-maturity and transferred securities		19			9			10
Securities available-for-sale:
Reclassification adjustment for net gains included in net gain (loss) on securities and other assets		(1,384	)		(624	)		(760	)
Change in net unrealized gain during the period		35			15			20
Total securities available-for-sale		(1,349	)		(609	)		(740	)
Defined benefit plans:
Reclassification adjustment for expense included in salaries and employee benefits expense		934			420			514
Change in the net actuarial gain or loss		(1,064	)		(478	)		(586	)
Total defined benefit plans		(130	)		(58	)		(72	)
Total other comprehensive income	$	(1,460	)	$	(658	)	$	(802	)

9

Activity in accumulated other comprehensive gain (loss), net of tax, was as follows:

	Securities Held-to- Maturity and Transferred Securities			Securities Available- for-Sale			Defined Benefit Plans			Derivative Liability			Total Accumulated Other Comprehensive Gain (Loss)
Balance as of January 1, 2016	$	(760	)	$	(122	)	$	(7,919	)	$	-		$	(8,801	)
Other comprehensive income (loss) before reclassifications		22			34			-			(526	)		(470	)
Amounts reclassified from accumulated other comprehensive loss		-			-			468			-			468
Net other comprehensive income (loss) during the period		22			34			468			(526	)		(2	)
Balance as of June 30, 2016	$	(738	)	$	(88	)	$	(7,451	)	$	(526	)	$	(8,803	)
Balance as of January 1, 2015	$	(826	)	$	736		$	(8,457	)	$	-		$	(8,547	)
Other comprehensive income (loss) before reclassifications		10			20			(586	)		-			(556	)
Amounts reclassified from accumulated other comprehensive loss		-			(760	)		514			-			(246	)
Net other comprehensive income (loss) during the period		10			(740	)		(72	)		-			(802	)
Balance as of June 30, 2015	$	(816	)	$	(4	)	$	(8,529	)	$	-		$	(9,349	)

6. EARNINGS PER SHARE ("EPS")

Basic EPS is computed by dividing income attributable to common stock by the weighted-average common shares outstanding during the reporting period.  Diluted EPS is computed using the same method as basic EPS, but reflects the potential dilution that would occur if "in the money" stock options were exercised and converted into common stock.  In determining the weighted average shares outstanding for basic and diluted EPS, treasury stock and unallocated ESOP shares are excluded.  Vested restricted stock award shares are included in the calculation of the weighted average shares outstanding for basic and diluted EPS.  Unvested restricted stock award shares are recognized as a special class of securities under ASC 260.

The following is a reconciliation of the numerators and denominators of basic EPS and diluted EPS for the periods presented:

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Net income per the Consolidated Statements of Income	$	11,208		$	11,529		$	61,245		$	23,307
Less: Dividends paid and earnings allocated to participating securities		(24	)		(33	)		(55	)		(73	)
Income attributable to common stock	$	11,184		$	11,496		$	61,190		$	23,234
Weighted average common shares outstanding, including participating securities		36,946,082			36,412,733			36,874,535			36,344,359
Less: weighted average participating securities		(192,525	)		(245,046	)		(202,885	)		(266,424	)
Weighted average common shares outstanding		36,753,557			36,167,687			36,671,650			36,077,935
Basic EPS	$	0.30		$	0.32		$	1.67		$	0.65
Income attributable to common stock	$	11,184		$	11,496		$	61,190		$	23,234
Weighted average common shares outstanding		36,753,557			36,167,687			36,671,650			36,077,935
Weighted average common equivalent shares outstanding		65,028			91,690			69,420			80,886
Weighted average common and equivalent shares outstanding		36,818,585			36,259,377			36,741,070			36,158,821
Diluted EPS	$	0.30		$	0.32		$	1.67		$	0.64

Common equivalent shares resulting from the dilutive effect of "in-the-money" outstanding stock options are calculated based upon the excess of the average market value of the Holding Company's common stock over the exercise price of outstanding in-the-moneystock options during the period.

10

There were 80,000 and 126,453 weighted-average stock options outstanding for the three-month periods ended June 30, 2016 and 2015, respectively, which were not considered in the calculation of diluted EPS since their exercise prices exceeded the average market price during the period.  There were 80,000 and 136,292 weighted-average stock options outstanding for the six-month periods ended June 30, 2016 and 2015, respectively, which were not considered in the calculation of diluted EPS since their exercise prices exceeded the average market price during the period.

7. ACCOUNTING FOR STOCK BASED COMPENSATION

During the three-month and six-month periods ended June 30, 2016 and 2015, the Holding Company and Bank maintained the Dime Community Bancshares, Inc. 2001 Stock Option Plan for Outside Directors, Officers and Employees, the 2004 Stock Incentive Plan and the 2013 Equity and Incentive Plan (collectively, the "Stock Plans"), which are discussed more fully in Note 14 to the Company's audited consolidated financial statements for the year ended December 31, 2015, and which are subject to the accounting requirements of ASC 505-50 and ASC 718.

Stock Option Awards

Combined activity related to stock options granted under the Stock Plans during the periods presented was as follows:

	At or for the Three Months Ended June 30,						At or for the Six Months Ended June 30,
	2016			2015			2016			2015
Options outstanding – beginning of period		465,246			905,780			465,246			979,916
Options granted		-			-			-			-
Options exercised		(193,828	)		(259,579	)		(193,828	)		(274,355	)
Options that expired prior to exercise		-			-			-			(59,360	)
Options outstanding – end of period		271,418			646,201			271,418			646,201
Intrinsic value of options exercised	$	732		$	300		$	732		$	384
Compensation expense recognized		-			8			-			31
Remaining unrecognized compensation expense		-			-			-			-
Intrinsic value of outstanding options at period end		553			1,632			553			1,632
Intrinsic value of vested options at period end		553			1,632			553			1,632
Weighted average exercise price of vested options – end of period		15.32			14.57			15.32			14.57

There were no grants of stock options during the three-month and six-month periods ended June 30, 2016 and 2015.

Restricted Stock Awards

The Company, from time to time, issues restricted stock awards to outside directors and certain officers under the 2004 Stock Incentive Plan or 2013 Equity and Incentive Plan. Typically, awards to outside directors fully vest on the first anniversary of the grant date, while awards to officers vest in equal annual installments over a four-year period.

The following is a summary of activity related to the restricted stock awards granted under the 2004 Stock Incentive Plan or 2013 Equity and Incentive Plan during the periods indicated:

	At or for the Three Months Ended June 30,						At or for the Six Months Ended June 30,
	2016			2015			2016			2015
Unvested allocated shares – beginning of period		222,142			285,610			223,894			289,660
Shares granted		60,675			68,069			60,675			68,069
Shares vested		(115,135	)		(128,327	)		(116,001	)		(132,377	)
Shares forfeited		(12,863	)		(980	)		(13,749	)		(980	)
Unvested allocated shares – end of period		154,819			224,372			154,819			224,372
Compensation recorded to expense	$	390		$	455		$	828		$	984

Performance Based Equity Awards

During the six months ended June 30, 2016, the Company established a long term incentive award program to certain officers that meets the criteria for equity-based accounting.  For each award, threshold (50% of target), target (100% of target) and maximum (150% of target) payment opportunities are eligible to be earned over a three-year performance period based on the Company's relative performance on certain measurement goals that were established at the onset of the performance period and cannot be altered subsequently.

11

The following table summarizes these awards as of the period indicated:

	At or for the Three Months Ended June 30, 2016			At or for the Six Months Ended June 30, 2016
Maximum aggregate share payout – beginning of period		28,044			28,044
Shares forfeited		(3,312	)		(3,312	)
Maximum aggregate share payout – end of period		24,732			24,732
Minimum aggregate share payout		-			-
Likely aggregate share payout		16,488			16,488
Compensation expense recognized	$	21		$	21

8. LOANS RECEIVABLE AND CREDIT QUALITY

Loans are reported at the principal amount outstanding, net of unearned fees or costs and the allowance for loan losses.  Interest income on loans is recorded using the level yield method.  Under this method, discount accretion and premium amortization are included in interest income.  Loan origination fees and certain direct loan origination costs are deferred and amortized as yield adjustments over the contractual loan terms.

Credit Quality Indicators:

On a quarterly basis, the Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors.  The Company analyzes loans individually by classifying them as to credit risk.  This analysis includes all loans, such as multifamily residential, mixed use residential (i.e., loans in which the aggregate rental income of the underlying collateral property is generated from both residential and commercial units, but the majority of such income is generated from the residential units), mixed use commercial real estate (i.e.,loans in which the aggregate rental income of the underlying collateral property is generated from both residential and commercial units, but the majority of such income is generated from the commercial units), and commercial real estate loans, as well as one-to four family residential and cooperative and condominium apartment loans. Prior to April 1, 2016, the analysis of one-to-four family residential and cooperative and condominium apartment loans included only loans with balances in excess of the Fannie Mae (“FNMA”) conforming loan limits for high-cost areas such as the Bank’s primary lending area (“FNMA Limits”) that were deemed to meet the definition of impaired. The Company uses the following definitions for risk ratings:

Special Mention.  Loans classified as special mention have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Bank's credit position at some future date.

Substandard.  Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.

Doubtful.  Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of then existing facts, conditions, and values, highly questionable and improbable.

The Bank had no loans classified as doubtful as of June 30, 2016 or December 31, 2015. All real estate loans not classified as Special Mention or Substandard were deemed pass loans at both June 30, 2016 and December 31, 2015.

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The following is a summary of the credit risk profile of real estate loans (including deferred costs) by internally assigned grade as of the dates indicated:

Balance at June 30, 2016
Grade	One- to Four- Family Residential, Including Condominium and Cooperative Apartment		Multifamily Residential and Residential Mixed Use		Commercial Mixed Use Real Estate		Commercial Real Estate		Total Real Estate Loans
Pass	$	72,366	$	4,205,375	$	385,432	$	510,971	$	5,174,144
Special Mention		935		5,068		2,146		1,230		9,379
Substandard		2,151		8,967		5,534		6,606		23,258
Doubtful		-		-		-		-		-
Total	$	75,452	$	4,219,410	$	393,112	$	518,807	$	5,206,781

Balance at December 31, 2015
Grade	One- to Four-Family Residential, Including Condominium and Cooperative Apartment		Multifamily Residential and Residential Mixed Use		Commercial Mixed Use Real Estate		Commercial Real Estate		Total Real Estate Loans
Not Graded(1)	$	7,698	$	-	$	-	$	-	$	7,698
Pass		61,256		3,743,298		370,110		473,242		4,647,906
Special Mention		945		9,759		1,622		4,857		17,183
Substandard		2,196		6,850		5,543		7,810		22,399
Doubtful		-		-		-		-		-
Total	$	72,095	$	3,759,907	$	377,275	$	485,909	$	4,695,186

⁽¹⁾ Amount comprised of fully performing one- to four-family residential and condominium and cooperative unit loans with balances equal to or less than the FNMA Limits.

For consumer loans, the Company evaluates credit quality based on payment activity.  Consumer loans that are 90 days or more past due are placed on non-accrual status, while all remaining consumer loans are classified and evaluated as performing.

The following is a summary of the credit risk profile of consumer loans by internally assigned grade:

Grade	Balance at June 30, 2016		Balance at December 31, 2015
Performing	$	2,332	$	1,586
Non-accrual		4		4
Total	$	2,336	$	1,590

13

The following is a breakdown of the past due status of the Company's investment in loans (excluding accrued interest and loans held for sale) as of the dates indicated:

At June 30, 2016
	30 to 59 Days Past Due		60 to 89 Days Past Due		Loans 90 Days or More Past Due and Still Accruing Interest		Non- accrual (1)		Total Past Due		Current		Total Loans
Real Estate:
One- to four-family residential, including condominium and cooperative apartment	$	-	$	154	$	-	$	487	$	641	$	74,811	$	75,452
Multifamily residential and residential mixed use		85		-		4,344		3,784		8,213		4,211,197		4,219,410
Commercial mixed use real estate		116		-		190		54		360		392,752		393,112
Commercial real estate		180		-		-		-		180		518,627		518,807
Total real estate	$	381	$	154	$	4,534	$	4,325	$	9,394	$	5,197,387	$	5,206,781
Consumer	$	-	$	-	$	-	$	4	$	-	$	2,332	$	2,336

⁽¹⁾ Includes all loans on non-accrual status regardless of the number of days such loans were delinquent as of June 30, 2016.

At December 31, 2015
	30 to 59 Days Past Due		60 to 89 Days Past Due		Loans 90 Days or More Past Due and Still Accruing Interest		Non- accrual  (1)		Total Past Due		Current		Total Loans
Real Estate:
One- to four-family residential, including condominium and cooperative apartment	$	127	$	-	$	625	$	1,113	$	1,865	$	70,230	$	72,095
Multifamily residential and residential mixed use		2,235		-		2,514		287		5,036		3,754,871		3,759,907
Commercial mixed use real estate		-		406		406		-		812		376,463		377,275
Commercial real estate		200		-		987		207		1,394		484,515		485,909
Total real estate	$	2,562	$	406	$	4,532	$	1,607	$	9,107	$	4,686,079	$	4,695,186
Consumer	$	1	$	1	$	-	$	4	$	6	$	1,584	$	1,590

⁽¹⁾ Includes all loans on non-accrual status regardless of the number of days such loans were delinquent as of December 31, 2015.

Accruing Loans 90 Days or More Past Due

The Bank continued accruing interest on eight real estate loans with an aggregate outstanding balance of $4,534 at June 30, 2016, and twelve real estate loans with an aggregate outstanding balance of $4,532 at December 31, 2015, all of which were 90 days or more past due on their respective contractual maturity dates. These loans continued to make monthly payments consistent with their initial contractual amortization schedule exclusive of the balloon payments due at maturity.  These loans were well secured and were expected to be refinanced, and, therefore, remained on accrual status and were deemed performing assets at the dates indicated above.

14

Troubled Debt Restructurings ("TDRs")

The following table summarizes outstanding TDRs by underlying collateral type as of the dates indicated:

	As of June 30, 2016				As of December 31, 2015
	No. of Loans		Balance		No. of Loans		Balance
One- to four-family residential, including  condominium and cooperative apartment		1	$	32		2	$	598
Multifamily residential and residential mixed use		4		1,057		3		696
Commercial mixed use real estate		1		4,304		1		4,344
Commercial real estate		1		3,396		2		3,635
Total real estate		7	$	8,789		8	$	9,273

The following table summarizes outstanding TDRs by accrual status as of the dates indicated:

	As of June 30, 2016				As of December 31, 2015
	No. of Loans		Balance		No. of Loans		Balance
Outstanding principal balance at period end		7	$	8,789		8	$	9,273
TDRs on accrual status at period end		7		8,789		7		9,066
TDRs on non-accrual status at period end		-		-		1		207

Accrual status for TDRs is determined separately for each TDR in accordance with the Bank’s policies for determining accrual or non-accrual status.  At the time an agreement is entered into between the Bank and the borrower that results in the Bank's determination that a TDR has been created, the loan can be on either accrual or non-accrual status.  If a loan is on non-accrual status at the time it is restructured, it continues to be classified as non-accrual until the borrower has demonstrated compliance with the modified loan terms for a period of at least six months.  Conversely, if at the time of restructuring the loan is performing (and accruing), it will remain accruing throughout its restructured period, unless the loan subsequently meets any of the criteria for non-accrual status under the Bank’s policy and agency regulations.

The Company has not restructured troubled consumer loans, as its consumer loan portfolio has not experienced any problem issues warranting restructuring.  Therefore, all TDRs were collateralized by real estate at both June 30, 2016 and December 31, 2015.

The Company modified one one- to four-family residential loan in a manner that met the criteria of a TDR during the three-month and six-month periods ended June 30, 2016. There were no loans modified in a manner that met the criteria of a TDR during the three-month period and six-month periods ended June 30, 2015.

The Bank's allowance for loan losses at June 30, 2016 and December 31, 2015 did not reflect any allocated reserve associated with TDRs.

As of June 30, 2016 and December 31, 2015, the Bank had no loan commitments to borrowers with outstanding TDRs.

A TDR is considered to be in payment default once it is 90 days contractually past due under the modified terms.  All TDRs are considered impaired loans and are evaluated individually for measurable impairment, if any.

There were no TDRs which defaulted within twelve months following the modification during the three-month and six-month periods ended June 30, 2016 or 2015 (thus no impact to the allowance for loan losses during those periods).

Impaired Loans

A loan is considered impaired when, based on then current information and events, it is probable that all contractual amounts due will not be collected in accordance with the terms of the loan.  Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due.  Loans that experience insignificant payment delays or shortfalls generally are not classified as impaired.  Management determines the significance of payment delays and shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed.

15

The Bank considers TDRs and non-accrual multifamily residential and commercial real estate loans, along with non-accrual one- to four-family loans in excess of the FNMA Limits, to be impaired.  Non-accrual one-to four-family loans equal to or less than the FNMA Limits, as well as all consumer loans, are considered homogeneous loan pools and are not required to be evaluated individually for impairment unless considered a TDR.

Impairment is typically measured using the difference between the outstanding loan principal balance and either: 1) the likely realizable value of a note sale; 2) the fair value of the underlying collateral, net of likely disposal costs, if repayment is expected to come from liquidation of the collateral; or 3) the present value of estimated future cash flows (using the loan’s pre-modification rate for some of the performing TDRs).  If a TDR is substantially performing in accordance with its restructured terms, management will look to either the potential net liquidation proceeds of the underlying collateral or the present value of the expected cash flows from the debt service in measuring impairment (whichever is deemed most appropriate under the circumstances).  If a TDR has re-defaulted, generally the likely realizable net proceeds from either a note sale or the liquidation of the collateral is considered when measuring impairment.  Measured impairment is either charged off immediately or, in limited instances, recognized as an allocated reserve within the allowance for loan losses.

Please refer to Note 9 for tabular information related to impaired loans.

9. ALLOWANCE FOR LOAN LOSSES

The allowance for loan losses may consist of specific and general components.  The Bank’s periodic evaluation of its allowance for loan losses is comprised of four primary components: (1) impaired loans; (2) non-impaired substandard loans; (3) non-impaired special mention loans; and (4) pass graded loans.  Within these components, the Company has identified the following portfolio segments for purposes of assessing its allowance for loan losses: (1) real estate loans; and (2) consumer loans.  Within these segments, the Bank analyzes the allowance for loan losses based upon the underlying collateral type (classes). Due to their small homogeneous balances, consumer loans were not individually evaluated for impairment as of either June 30, 2016 or December 31, 2015.

Impaired Loan Component

All multifamily residential, mixed use, commercial real estate and construction loans that are deemed to meet the definition of impaired are individually evaluated for impairment.  In addition, all condominium or cooperative apartment and one- to four-family residential real estate loans in excess of the FNMA Limits are individually evaluated for impairment.  Impairment is typically measured using the difference between the outstanding loan principal balance and either: (1) the likely realizable value of a note sale; (2) the fair value of the underlying collateral, net of likely disposal costs, if repayment is expected to come from liquidation of the collateral; or (3) the present value of estimated future cash flows (using the loan's pre-modification rate in the case of some performing TDRs).  For impaired loans on non-accrual status, either of the initial two measurements is utilized.

All TDRs are considered impaired loans and are evaluated individually for measurable impairment, if any.  If a TDR is substantially performing in accordance with its restructured terms, management will look to either the present value of the expected cash flows from the debt service or the potential net liquidation proceeds of the underlying collateral in measuring impairment (whichever is deemed most appropriate under the circumstances). If a TDR has re-defaulted, the likely realizable net proceeds from either a note sale or the liquidation of the collateral are generally considered when measuring impairment.  While measured impairment is generally charged off immediately, impairment attributed to a reduction in the present value of expected cash flows of a performing TDR is generally reflected as an allocated reserve within the allowance for loan losses. At June 30, 2016 and December 31, 2015, there were no allocated reserves related to TDRs within the allowance for loan losses.

Smaller balance homogeneous real estate loans, such as condominium or cooperative apartment and one-to four-family residential real estate loans with balances equal to or less than the FNMA Limits, are collectively evaluated for impairment, and accordingly, are not separately identified for impairment disclosures.

Non-Impaired Loan Component

As of June 30, 2016, the Bank refined the calculation of the allowance for loan losses associated with non-impaired loans using third party software purchased by the Bank. The software model is substantially similar to the previous model used by the Bank whereby the primary drivers of the calculation are historical charge-offs by loan type and certain qualitative elements. Management has evaluated the impact of the change and concluded that it is not material to the overall allowance for non-impaired loans.

16

Substandard Non-Impaired Loan Component

At June 30, 2016, the reserve allocated within the allowance for loan losses associated with non-impaired loans internally classified as Substandard reflected expected loss percentages on the Bank’s pool of such loans that were derived based upon an analysis of historical losses over the previous forty-eight months, which is the same historical loss look-back period used for all Pass-graded loans.

At December 31, 2015, the reserve allocated within the allowance for loan losses associated with non-impaired loans internally classified as Substandard reflected expected loss percentages on the Bank's pool of such loans that were derived based upon an analysis of historical losses over the previous twelve month period.  The loss percentage resulting from this analysis was then applied to the aggregate pool of non-impaired Substandard loans at December 31, 2015.

Based upon the methodologies used for the non-impaired Substandard loan component at both June 30, 2016 and December 31, 2015, increases or decreases in the amount of either non-impaired Substandard loans or charge-offs associated with such loans, or a change in the measurement timeframe utilized to derive the expected loss percentage, would impact the level of reserves determined on such loans.  As a result, the allowance for loan losses associated with non-impaired Substandard loans is subject to volatility.

The portion of the allowance for loan losses attributable to non-impaired Substandard loans was $99 at June 30, 2016 and $348 at December 31, 2015.  The decline in the allowance attributable to non-impaired Substandard loans during the six month period ended June 30, 2016 was due to a decrease of $1,943 in the balance of such loans from December 31, 2015 to June 30, 2016 combined with a lower loss expectation derived as of June 30, 2016 compared to December 31, 2015.

All non-impaired Substandard loans were deemed sufficiently well secured and performing to have remained on accrual status both prior and subsequent to their downgrade to the Substandard internal loan grade at both June 30, 2016 and December 31, 2015.

Special Mention Non-Impaired Loan Component

At June 30, 2016, the reserve allocated within the allowance for loan losses associated with non-impaired loans internally classified as Special Mention reflected expected loss percentages on the Bank’s pool of such loans that were derived based upon an analysis of historical losses over the previous forty-eight months, which is the same historical loss look-back period used for Pass-graded loans.

At December 31, 2015, the reserve allocated within the allowance for loan losses associated with non-impaired loans internally classified as Special Mention reflected an expected loss percentage on the Bank's pool of such loans that was derived based upon an analysis of historical losses over the previous twelve month period.  The loss percentage resulting from this analysis was then applied to the aggregate pool of non-impaired Special Mention loans at December 31, 2015.

Based upon the methodologies used for the non-impaired Special Mention loan component at both June 30, 2016 and December 31, 2015, increases or decreases in the amount of either non-impaired Special Mention loans or charge-offs associated with such loans, or a change in the measurement timeframe utilized to derive the expected loss percentage, would impact the level of reserves determined on such loans.  As a result, the allowance for loan losses associated with non-impaired Special Mention loans is subject to volatility.

The portion of the allowance for loan losses attributable to non-impaired Special Mention loans was $71 at June 30, 2016, down from $88 at December 31, 2015, due primary to a reduction of $7,804 in the balance of such loans.

17

Pass Graded Loan Component

The Bank initially looks to the underlying collateral type when determining the allowance for loan losses associated with pass graded real estate loans.  The following underlying collateral types are analyzed separately: 1) one- to four family residential and condominium or cooperative apartment; 2) multifamily residential and residential mixed use; 3) commercial mixed use real estate, 4) commercial real estate; and 5) construction and land acquisition.  Within the analysis of each underlying collateral type, the following elements are additionally considered and provided weighting in determining the allowance for loan losses for pass graded real estate loans:

(i) Charge-off experience (including peer charge-off experience)

(ii) Economic conditions

(iii) Underwriting standards or experience

(iv) Loan concentrations

(v) Regulatory climate

(vi) Nature and volume of the portfolio

(vii) Changes in the quality and scope of the loan review function

The following is a brief synopsis of the manner in which each element is considered:

(i)  Charge-off experience - Loans within the pass graded loan portfolio are segmented by significant common characteristics, against which historical loss rates are applied.  The Bank also reviews and considers the charge-off experience of peer banks in its lending marketplace in order to determine whether potential losses that could take a longer period to flow through its allowance for loan losses possibly exist.

(ii) Economic conditions - At both June 30, 2016 and December 31, 2015, the Bank assigned a loss allocation to its entire pass graded real estate loan portfolio based, in part, upon a review of economic conditions affecting the local real estate market. Specifically, the Bank considered both the level of, and recent trends in: 1) the local and national unemployment rate, 2) residential and commercial vacancy rates, 3) real estate sales and pricing, and 4) delinquencies in the Bank’s loan portfolio.

(iii) Underwriting standards or experience - Underwriting standards are reviewed to ensure that changes in the Bank's lending policies and practices are adequately evaluated for risk and reflected in its analysis of potential credit losses.  Loss expectations associated with changes in the Bank’s lending policies and practices, if any, are then incorporated into the methodology.

(iv) Loan concentrations - The Bank regularly reviews its loan concentrations (borrower, collateral type and location) in order to ensure that heightened risk has not evolved that has not been captured through other factors.  The risk component of loan concentrations is regularly evaluated for reserve adequacy.

(v) Regulatory climate – Consideration is given to public statements made by the banking regulatory agencies that have a potential impact on the Bank’s loan portfolio and allowance for loan losses.

(vi) Nature and volume of the portfolio – The Bank considers any significant changes in the overall nature and volume of its loan portfolio.

(vii) Changes in the quality and scope of the loan review function – The Bank considers the potential impact upon its allowance for loan losses of any adverse change in the quality and scope of the loan review function.

18

Consumer Loans

Due to their small individual balances, the Bank does not evaluate individual consumer loans for impairment. Loss percentages are applied to aggregate consumer loans based upon both their delinquency status and loan type. These loss percentages are derived from a combination of the Company’s historical loss experience and/or nationally published loss data on such loans. Consumer loans in excess of 120 days delinquent are typically fully charged off against the allowance for loan losses.

The following table presents data regarding the allowance for loan losses and loans evaluated for impairment by class of loan within the real estate loan segment as well as for the aggregate consumer loan segment:

At or for the Three Months Ended June 30, 2016
	Real Estate Loans															Consumer Loans
	One- to Four Family Residential, Including Condominium and Cooperative Apartment			Multifamily Residential and Residential Mixed Use			Commercial Mixed Use Real Estate			Commercial Real Estate			Total Real Estate
Beginning balance	$	99		$	14,462		$	1,552		$	2,381		$	18,494		$	19
Provision (credit) for loan losses		96			407			133			(194	)		442			-
Charge-offs		(4	)		(43	)		(1	)		-			(48	)		-
Recoveries		1			-			-			-			1			1
Ending balance	$	192		$	14,826		$	1,684		$	2,187		$	18,889		$	20
Ending balance – loans individually evaluated for impairment	$	414		$	3,930		$	4,357		$	3,396		$	12,097		$	-
Ending balance – loans collectively evaluated for impairment		75,038			4,215,480			388,755			515,411			5,194,684			2,336
Allowance balance associated with loans individually evaluated for impairment		-			-			-			-			-			-
Allowance balance associated with loans collectively evaluated for impairment		192			14,826			1,684			2,187			18,889			20

At December 31, 2015
	Real Estate Loans										Consumer Loans
	One- to Four Family Residential, Including Condominium and Cooperative Apartment		Multifamily Residential and Residential Mixed Use		Commercial Mixed Use Real Estate		Commercial Real Estate		Total Real Estate
Ending balance – loans individually evaluated for impairment	$	598	$	983	$	4,345	$	3,635	$	9,561	$	-
Ending balance – loans collectively evaluated for impairment		71,497		3,758,924		372,930		482,274		4,685,625		1,590
Allowance balance associated with loans individually evaluated for impairment		-		-		-		-		-		-
Allowance balance associated with loans collectively evaluated for impairment		263		14,118		1,652		2,461		18,494		20

At or for the Three Months Ended June 30, 2015
	Real Estate Loans														Consumer Loans
	One- to Four Family Residential, Including Condominium and Cooperative Apartment			Multifamily Residential and Residential Mixed Use			Commercial Mixed Use Real Estate		Commercial Real Estate			Total Real Estate
Beginning balance	$	111		$	14,173		$	1,566	$	2,365		$	18,215		$	22
Provision (credit) for loan losses		19			238			111		(1,504	)		(1,136	)		1
Charge-offs		(5	)		(40	)		-		(1	)		(46	)		(1	)
Recoveries		1			3			5		1,489			1,498			-
Ending balance	$	126		$	14,374		$	1,682	$	2,349		$	18,531		$	22

19

At or for the Six Months Ended June 30, 2016
	Real Estate Loans															Consumer Loans
	One- to Four Family Residential, Including Condominium and Cooperative Apartment			Multifamily Residential and Residential Mixed Use			Commercial Mixed Use Real Estate			Commercial Real Estate			Total Real Estate
Beginning balance	$	263		$	14,118		$	1,652		$	2,461		$	18,494		$	20
Provision (credit) for loan losses		(46	)		731			34			(297	)		422			(1	)
Charge-offs		(27	)		(60	)		(2	)		-			(89	)		-
Recoveries		2			37			-			23			62			1
Ending balance	$	192		$	14,826		$	1,684		$	2,187		$	18,889		$	20

At or for the Six Months Ended June 30, 2015
	Real Estate Loans															Consumer Loans
	One- to Four Family Residential, Including Condominium and Cooperative Apartment			Multifamily Residential and Residential Mixed Use			Commercial Mixed Use Real Estate			Commercial Real Estate			Total Real Estate
Beginning balance	$	150		$	13,852		$	1,644		$	2,823		$	18,469		$	24
Provision (credit) for loan losses		80			560			51			(1,998	)		(1,307	)		-
Charge-offs		(107	)		(41	)		(37	)		(1	)		(186	)		(2	)
Recoveries		3			3			24			1,525			1,555			-
Ending balance	$	126		$	14,374		$	1,682		$	2,349		$	18,531		$	22

The following tables summarize impaired real estate loans as of or for the periods indicated (by collateral type within the real estate loan segment):

	At June 30, 2016						At December 31, 2015
	Unpaid Principal Balance at Period End		Recorded Investment at Period End(1)		Reserve Balance Allocated within the Allowance for Loan Losses at Period End		Unpaid Principal Balance at Period End		Recorded Investment at Period End(1)		Reserve Balance Allocated within the Allowance for Loan Losses at Period End
One- to Four Family Residential, Including Condominium and Cooperative Apartment
With no allocated reserve	$	414	$	414	$	-	$	635	$	598	$	-
With an allocated reserve		-		-		-		-		-		-
Multifamily Residential and Residential Mixed Use
With no allocated reserve		3,930		3,930		-		983		983		-
With an allocated reserve		-		-		-		-		-		-
Commercial Mixed Use Real Estate
With no allocated reserve		4,357		4,357		-		4,345		4,345		-
With an allocated reserve		-		-		-		-		-		-
Commercial Real Estate
With no allocated reserve		3,396		3,396		-		3,642		3,635		-
With an allocated reserve		-		-		-		-		-		-
Total
With no allocated reserve	$	12,097	$	12,097	$	-	$	9,605	$	9,561	$	-
With an allocated reserve	$	-	$	-	$	-	$	-	$	-	$	-

(1) The recorded investment excludes accrued interest receivable and loan origination fees, net, due to immateriality.

20

	Three Months Ended June 30,								Six Months Ended June 30,
	2016				2015				2016				2015
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
One- to Four Family Residential, Including Condominium and Cooperative Apartment
With no allocated reserve	$	399	$	7	$	602	$	11	$	465	$	41	$	603	$	23
With an allocated reserve		-		-		-		-		-		-		-		-
Multifamily Residential and Residential Mixed Use
With no allocated reserve		2,451		25		985		31		1,962		38		1,081		46
With an allocated reserve		-		-		-		-		-		-		-		-
Commercial Mixed Use Real Estate
With no allocated reserve		4,367		44		4,393		44		4,360		88		4,395		88
With an allocated reserve		-		-		-		-		-		-		-		-
Commercial Real Estate
With no allocated reserve		3,404		34		5,929		35		3,481		68		6,688		71
With an allocated reserve		-		-		-		-		-		-		1,833		97
Total
With no allocated reserve	$	10,621	$	110	$	11,909	$	121	$	10,268	$	235	$	12,767	$	228
With an allocated reserve	$	-	$	-	$	-	$	-	$	-	$	-	$	1,833	$	97

10. INVESTMENT AND MORTGAGE-BACKED SECURITIES

The following is a summary of major categories of securities owned by the Company (excluding trading securities) at June 30, 2016:

	Purchase Amortized/ Historical Cost		Recorded Amortized/ Historical Cost (1)		Unrealized Gains		Unrealized Losses			Fair Value
Investment securities held-to-maturity:
Pooled bank trust preferred securities ("TRUPS")	$	15,326	$	5,319	$	1,955	$	(469	)	$	6,805
Available-for-sale securities:
Investment securities
Registered Mutual Funds		4,011		4,011		20		(194	)		3,837
MBS
Pass-through MBS issued by GSEs		392		392		14		-			406

(1)  Amount represents the purchase amortized / historical cost less any OTTI charges (credit or non-credit related) previously recognized.  For the TRUPS, amount is also net of the $781 unamortized portion of the unrealized loss that was recognized in accumulated other comprehensive loss on September 1, 2008 (the day on which these securities were transferred from available-for-sale to held-to-maturity).

21

The following is a summary of major categories of securities owned by the Company (excluding trading securities) at December 31, 2015:

	Purchase Amortized/ Historical Cost		Recorded Amortized/ Historical Cost (1)		Unrealized Gains		Unrealized Losses			Fair Value
Investment securities held-to-maturity:
TRUPS	$	15,344	$	5,242	$	2,154	$	(345	)	$	7,051
Available-for-sale securities:
Investment securities
Registered Mutual Funds		3,990		3,990		25		(259	)		3,756
MBS
Pass-through MBS issued by GSEs		418		418		13		-			431

(1)  Amount represents the purchase amortized/historical cost less any OTTI charges (credit or non-credit related) previously recognized.  For the TRUPS, amount is also net of the $807 unamortized portion of the unrealized loss that was recognized in accumulated other comprehensive loss on September 1, 2008 (the day on which these securities were transferred from available-for-sale to held-to-maturity).

The held-to-maturity TRUPS had a weighted average term to maturity of 18.5 years at June 30, 2016.  At June 30, 2016, the pass-through MBS issued by GSEs possessed a weighted average contractual maturity of 11.5 years. All of the pass-throughMBS issued by GSEspossess an annual interest rate adjustment.

There were no sales of investment securities during the three-month and six-month periods ended June 30, 2016. The entire gain/loss on securities shown in the unaudited condensed consolidated statements of income for this period resulted from market valuation changes or sales of trading securities.  Proceeds from the sale of trading securities were $3.6 million during the three and six month periods ended June 30, 2016.  Gross gains of $3 and gross losses of $45 were recognized on these sales.   Proceeds from the sales of investment securities available-for-sale totaled $2 million during the three months ended June 30, 2015. Gross gains of $4 and gross losses of $8 were recognized on these sales. Proceeds from the sales of investment securities available-for-sale totaled $2,070 during the six months ended June 30, 2015. Gross gains of $4 and gross losses of $8 were recognized on these sales.

Tax provisions related to the gains on sales of investment securities and MBS available-for-sale recognized during the three-month and six-month periods ended June 30, 2015 are disclosed in the condensed consolidated statements of comprehensive income.

As of each reporting period through June 30, 2016, the Company has applied the protocol established by ASC 320-10-65 in order to determine whether OTTI existed for its TRUPS and/or to measure, for TRUPS that have been determined to be other than temporarily impaired, the credit related and non-credit related components of OTTI.  As of June 30, 2016, five TRUPS were determined to meet the criteria for OTTI based upon this analysis.  At June 30, 2016, these five securities had credit ratings ranging from "C" to "Caa3."

22

The following table provides a reconciliation of the pre-tax OTTI charges recognized on the Company's TRUPS:

	At or for the Three Months Ended June 30, 2016								At or for the Three Months Ended June 30, 2015
	Credit Related OTTI Recognized in Earnings			Non-Credit OTTI Recognized in Accumulated Other Comprehensive Loss			Total OTTI		Credit Related OTTI Recognized in Earnings			Non-Credit OTTI Recognized in Accumulated Other Comprehensive Loss		Total OTTI
Cumulative pre-tax balance at the beginning of the period	$	8,691		$	570		$	9,261	$	8,795		$	561	$	9,356
Accretion (Amortization) of previously recognized OTTI		(26	)		(8	)		(34)		(26	)		35		9
Cumulative pre-tax balance at end of the period	$	8,665		$	562		$	9,227	$	8,769		$	596	$	9,365

	At or for the Six Months Ended June 30, 2016								At or for the Six Months Ended June 30, 2015
	Credit Related OTTI Recognized in Earnings			Non-Credit OTTI Recognized in Accumulated Other Comprehensive Loss			Total OTTI		Credit Related OTTI Recognized in Earnings			Non-Credit OTTI Recognized in Accumulated Other Comprehensive Loss		Total OTTI
Cumulative pre-tax balance at the beginning of the period	$	8,717		$	578		$	9,295	$	8,945		$	569	$	9,514
Accretion (Amortization) of previously recognized OTTI		(52	)		(16	)		(68)		(176	)		27		(149	)
Cumulative pre-tax balance at end of the period	$	8,665		$	562		$	9,227	$	8,769		$	596	$	9,365

The following table summarizes the gross unrealized losses and fair value of investment securities as of June 30, 2016, aggregated by investment category and the length of time the securities were in a continuous unrealized loss position:

	Less than 12 Months Consecutive Unrealized Losses				12 Months or More Consecutive Unrealized Losses				Total
	Fair Value		Gross Unrecognized/ Unrealized Losses		Fair Value		Gross Unrecognized/ Unrealized Losses		Fair Value		Gross Unrecognized/ Unrealized Losses
Held-to-Maturity Securities:
TRUPS	$	-	$	-	$	2,255	$	469	$	2,255	$	469
Available-for-Sale Securities:
Registered Mutual Funds		371		8		3,121		186		3,492		194

TRUPS That Have Maintained an Unrealized Holding Loss for 12 or More Consecutive Months

At June 30, 2016, impairment of two TRUPS was deemed temporary, as management believed that the full recorded balance of the investments would be realized.  In making this determination, management considered the following:

· Based upon an internal review of the collateral backing the TRUPS portfolio, which accounted for current and prospective deferrals, the securities could reasonably be expected to continue making all contractual payments

· The Company does not intend to sell these securities prior to full recovery of their impairment

· There were no cash or working capital requirements nor contractual or regulatory obligations that would compel the Company to sell these securities prior to their forecasted recovery or maturity

· The securities have a pool of underlying issuers comprised primarily of banks

· None of the securities have exposure to real estate investment trust issued debt (which has experienced high default rates)

· The securities feature either a mandatory auction or a de-leveraging mechanism that could result in principal repayments to the Bank prior to the stated maturity of the security

· The securities are adequately collateralized

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The following table summarizes the gross unrealized losses and fair value of investment securities as of December 31, 2015, aggregated by investment category and the length of time the securities were in a continuous unrealized loss position:

	Less than 12 Months Consecutive Unrealized Losses				12 Months or More Consecutive Unrealized Losses				Total
	Fair Value		Gross Unrecognized/ Unrealized Losses		Fair Value		Gross Unrecognized/ Unrealized Losses		Fair Value		Gross Unrecognized/ Unrealized Losses
Held-to-Maturity Securities:
TRUPS	$	-	$	-	$	2,359	$	345	$	2,359	$	345
Available-for-Sale Securities:
Registered Mutual Funds		3,026		259		-		-		3,026		259

11. DERIVATIVES AND HEDGING ACTIVITIES

Cash Flow Hedges of Interest Rate Risk

The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy.  Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in Accumulated Other Comprehensive Loss and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During the three and six months ended June 30, 2016, such derivatives were used to hedge the variability in cash flows associated with wholesale borrowings.  The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. During the three and six months ended June 30, 2016, the Company’s did not record any hedge ineffectiveness. The Company did not have any derivatives outstanding prior to the quarter ended June 30, 2016.

Amounts reported in accumulated other comprehensive loss related to derivatives will be reclassified to interest expense as interest payments are paid on the Company’s liabilities.

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Statement of Financial Condition:

	At June 30, 2016
	Count		Notional Amount		Fair Value Assets		Fair Value Liabilities
Derivatives designated as hedging instruments
Interest Rate Products		4	$	90,000	$	-	$	957
Total derivatives designated as hedging instruments		4	$	90,000	$	-	$	957

Weighted average pay rates	1.24%
Weighted average receive rates	0.64%
Weighted average maturity	5.82 years

24

The table below presents the effect of the Company’s derivative financial instruments as the amount of gain or (loss) on the Consolidated Statements of Income as of June 30, 2016:

	At or for the Three and Six Months Ended June 30, 2016
	Amount of Gain or (Loss) Recognized in Other Comprehensive Income (Effective Portion)			Amount of Gain or (Loss) Reclassified from Other Comprehensive Income into Interest Expense (Effective Portion)			Amount of Gain or (Loss) Recognized in Other Non-Interest Expense (Ineffective Portion)
Interest Rate Products	$	(998	)	$	(41	)	$	-

The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of June 30, 2016. The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the Consolidated Statements of Financial Condition.

Offsetting of Derivative Liabilities as of June 30, 2016:

	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statements of Financial Condition		Net Amounts of Assets presented in the Statements of Financial Condition		Gross Amounts Not Offset in the Statements of Financial Condition				Net Amount
							Financial Instruments		Cash Collateral Received
Counterparty A	$	957	$	-	$	957	$	-	$	-	$	957

The Company’s  agreements with each of its derivative counterparties state that if the Company defaults on any of its indebtedness, it could also be declared in default on its derivative obligations and could be required to terminate its derivative positions with the counterparty.

The Company’s agreements with certain of its derivative counterparties state that if the Bank fails to maintain its status as a well-capitalized institution, the Bank could be required to terminate its derivative positions with the counterparty.

As of June 30, 2016, the termination value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $997. If the Company had breached any of the above provisions at June 30, 2016, it could have been required to settle its obligations under the agreements at the termination value and would have been required to pay any additional amounts due in excess of amounts previously posted as collateral with the respective counterparty. There were no provisions breached for the period ended June 30, 2016.

12. FAIR VALUE OF FINANCIAL INSTRUMENTS

The fair value hierarchy established under ASC 820-10 is summarized as follows:

Level 1 Inputs – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the reporting entity has the ability to access at the measurement date.

Level 2 Inputs – Significant other observable inputs such as any of the following: (1) quoted prices for similar assets or liabilities in active markets, (2) quoted prices for identical or similar assets or liabilities in markets that are not active, (3) inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates), or (4) inputs that are derived principally from or corroborated by observable market data by correlation or other means (market-corroborated inputs).

Level 3 Inputs – Significant unobservable inputs for the asset or liability.  Significant unobservable inputs reflect the reporting entity's own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk).  Significant unobservable inputs shall be used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date.

25

The following tables present the assets that are reported on the consolidated statements of financial condition at fair value as of the date indicated segmented by level within the fair value hierarchy.  Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

Assets and Liabilities Measured at Fair Value on a Recurring Basis at June 30, 2016
			Fair Value Measurements Using
Description	Total		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
Financial Assets
Trading securities (Registered Mutual Funds):
Domestic Equity Mutual Funds	$	787	$	787	$	-	$	-
International Equity Mutual Funds		207		207		-		-
Fixed Income Mutual Funds		5,820		5,820		-		-
Investment securities available-for-sale:
Registered Mutual Funds:
Domestic Equity Mutual Funds		1,244		1,244		-		-
International Equity Mutual Funds		374		374		-		-
Fixed Income Mutual Funds		2,219		2,219		-		-
Pass-through MBS issued by GSEs		406		-		406		-
Financial Liabilities
Derivative – interest rate product	$	957		-	$	957		-

Assets Measured at Fair Value on a Recurring Basis at December 31, 2015
			Fair Value Measurements Using
Description	Total		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
Trading securities (Registered Mutual Funds):
Domestic Equity Mutual Funds	$	1,053	$	1,053	$	-	$	-
International Equity Mutual Funds		281		281		-		-
Fixed Income Mutual Funds		8,867		8,867		-		-
Investment securities available-for-sale:
Registered Mutual Funds:
Domestic Equity Mutual Funds		1,253		1,253		-		-
International Equity Mutual Funds		383		383		-		-
Fixed Income Mutual Funds		2,120		2,120		-		-
Pass-through MBS issued by GSEs		431		-		431		-

The Company’s available-for-sale investment securities and MBS are reported at fair value, which were determined utilizing prices obtained from independent parties. The valuations obtained are based upon market data, and often utilize evaluated pricing models that vary by asset and incorporate available trade, bid and other market information. For securities that do not trade on a daily basis, pricing applications apply available information such as benchmarking and matrix pricing. The market inputs normally sought in the evaluation of securities include benchmark yields, reported trades, broker/dealer quotes (obtained only from market makers or broker/dealers recognized as market participants), issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. For certain securities, additional inputs may be used or some market inputs may not be applicable.  Prioritization of inputs may vary on any given day based on market conditions.

The pass-through MBS issued by GSEs all possessed the highest possible credit rating published by at least one established credit rating agency as of June 30, 2016 and December 31, 2015. Obtaining market values as of June 30, 2016 and December 31, 2015 for these securities utilizing significant observable inputs was not difficult due to their considerable demand.

Derivatives represent interest rate swaps and estimated fair values are based on valuation models using observable market data as of the measurement date.

There were no assets measured at fair value on a non-recurring basis as of June 30, 2016 or December 31, 2015.

Impaired Loans - Loans with certain characteristics are evaluated individually for impairment. A loan is considered impaired under ASC 310-10-35 when, based upon existing information and events, it is probable that the Bank will be unable to collect all amounts due, including principal and interest, according to the contractual terms of the loan agreement. The Bank's impaired loans at June 30, 2016 and December 31, 2015 were collateralized by real estate and were thus carried at the lower of the outstanding principal balance or the estimated fair value of the collateral.  Fair value is estimated through either a negotiated note sale price (Level 3 input), or, more commonly, a recent real estate appraisal (Level 3 input).  The appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value.

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An appraisal is generally ordered for all impaired multifamily residential, mixed use and commercial real estate loans for which the most recent appraisal is more than one year old.  The Bank never adjusts independent appraisal data upward.  Occasionally, management will adjust independent appraisal data downward based upon its own lending expertise and/or experience with the subject property, utilizing such factors as potential note sale values, or a more refined estimate of costs to repair and time to lease the property.  Adjustments for potential disposal costs are also considered when determining the final appraised value.

As of June 30, 2016 and December 31, 2015, there were no impaired loans measured at fair value.

The carrying amounts and estimated fair values of financial instruments other than those measured at fair value on either a recurring or non-recurring basis at June 30, 2016 and December 31, 2015 were as follows:

			Fair Value at June 30, 2016 Using
At June 30, 2016	Carrying Amount		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total
Assets:
Cash and due from banks	$	89,927	$	89,927	$	-	$	-	$	89,927
Investment securities held to maturity (TRUPS)		5,319		-		-		6,805		6,805
Loans, net		5,190,208		-		-		5,213,167		5,213,167
Accrued interest receivable		14,896		-		2		14,894		14,896
FHLBNY capital stock		52,814		N/A		N/A		N/A		N/A
Liabilities:
Savings, money market and checking accounts		2,745,744		2,745,744		-		-		2,745,744
Certificates of Deposit ("CDs")		1,034,522		-		1,043,254		-		1,043,354
Escrow and other deposits		92,290		92,964		-		-		92,964
FHLBNY Advances		1,017,125		-		1,026,682		-		1,026,682
Trust Preferred securities payable		70,680		-		69,973		-		69,973
Accrued interest payable		2,156		-		2,156		-		2,156

			Fair Value at December 31, 2015 Using
At December 31, 2015	Carrying Amount		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total
Assets:
Cash and due from banks	$	64,154	$	64,154	$	-	$	-	$	64,154
Investment securities held to maturity (TRUPS)		5,242		-		-		7,051		7,051
Loans, net		4,678,262		-		-		4,722,803		4,722,803
Accrued interest receivable		13,486		-		19		13,467		12,664
FHLBNY capital stock		58,713		N/A		N/A		N/A		N/A
Liabilities:
Savings, money market and checking accounts		2,325,463		2,325,463		-		-		2,325,463
CDs		858,847		-		865,581		-		865,581
Escrow and other deposits		77,130		77,130		-		-		77,130
FHLBNY Advances		1,166,725		-		1,170,274		-		1,170,274
Trust Preferred securities payable		70,680		-		69,973		-		69,973
Accrued interest payable		2,259		-		2,259		-		2,259

Cash and Due From Banks – The fair value is assumed to be equal to their carrying value as these amounts are due upon demand (deemed a Level 1 valuation).

TRUPS Held to Maturity – At both June 30, 2016 and December 31, 2015 the Company owned seven TRUPS classified as held-to-maturity. As a result of improved marketplace stability and enhanced trading activity, broker quotations became the sole valuation source utilized to estimate the fair value of TRUPS as of June 30, 2016 and December 31, 2015. Despite improvement in the overall marketplace conditions, unobservable data was still deemed to have been utilized in the broker quotation pricing, warranting a determination of Level 3 valuation for these securities at June 30, 2016 and December 31, 2015.

Loans, Net (Excluding Impaired Loans Carried at Fair Value) – For adjustable rate loans repricing monthly or quarterly, and with no significant change in credit risk, fair values are based on carrying values.  The fair value of all remaining loans receivable is determined by discounting anticipated future cash flows of the loans, net of anticipated prepayments, using a discount rate reflecting current market rates for loans with similar terms to borrowers of similar credit quality.  The valuation method used for loans does not necessarily represent an exit price valuation methodology as defined under ASC 820.  However, since the valuation methodology is deemed to be comparable to a Level 3 input, the fair value of loans receivable other than impaired loans measured at fair value, is shown under the Level 3 valuation column.

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Accrued Interest Receivable – The estimated fair value of accrued interest receivable approximates its carrying amount, and is deemed to be valued at an input level comparable to its underlying financial asset.

FHLBNY Capital Stock – It is not practicable to determine the fair value of FHLBNY capital stock due to restrictions placed on transferability.

Deposits – The fair value of savings, money market, and checking accounts is, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amount), which has been deemed a Level 1 valuation.  The fair value of CDs is based upon the present value of contractual cash flows using current interest rates for instruments of the same remaining maturity (deemed a Level 2 valuation).

Escrow and Other Deposits – The fair value of escrow and other deposits is, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amount), which has been deemed a Level 1 valuation.

FHLBNY Advances – Thefair value of FHLBNY advances is measured by the discounted anticipated cash flows through contractual maturity or next interest repricing date, or an earlier call date if, as of the valuation date, the borrowing is expected to be called (deemed a Level 2 valuation).  The carrying amount of accrued interest payable on FHLBNY advances is its fair value and is deemed a Level 2 valuation.

Trust Preferred Securities Payable – The fair value of trust preferred securities payable is estimated using discounted cash flow analyses based on then current borrowing rates for similar types of borrowing arrangements (deemed a Level 2 valuation), and is provided to the Company quarterly independently by a market maker in the underlying security.

Accrued Interest Payable – The estimated fair value of accrued interest payable approximates its carrying amount, and is deemed to be valued at an input level comparable to its underlying financial liability.

13. RETIREMENT AND POSTRETIREMENT PLANS

The Holding Company or the Bank maintains the Retirement Plan of The Dime Savings Bank of Williamsburgh (the "Employee Retirement Plan"), the Retirement Plan for Board Members of Dime Community Bancshares, Inc. (the "Outside Director Retirement Plan"), the BMP, and the Postretirement Welfare Plan of The Dime Savings Bank of Williamsburgh (the "Postretirement Plan").  Net expenses associated with these plans were comprised of the following components:

	Three Months Ended June 30, 2016						Three Months Ended June 30, 2015
	BMP, Employee and Outside Director Retirement Plans			Postretirement Plan			BMP, Employee and Outside Director Retirement Plans			Postretirement Plan
Service cost	$	-		$	-		$	-		$	-
Interest cost		343			16			343			29
Expected return on assets		(383	)		-			(414	)		-
Unrecognized past service liability		-			(2	)		-			-
Amortization of unrealized loss		428			(1	)		480			(13	)
Net periodic cost	$	388		$	13		$	409		$	16

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	Six Months Ended June 30, 2016						Six Months Ended June 30, 2015
	BMP, Employee and Outside Director Retirement Plans			Postretirement Plan			BMP, Employee and Outside Director Retirement Plans			Postretirement Plan
Service cost	$	-		$	-		$	-		$	9
Interest cost		686			32			687			538
Expected return on assets		(766	)		-			(828	)		-
Curtailment gain(1)		-			-			-			(3,394	)
Unrecognized past service liability		-			(4	)		-			-
Amortization of unrealized loss		858			(2	)		959			(25	)
Net periodic cost (gain)	$	778		$	26		$	818		$	(2,872	)

(1) The Postretirement Plan was amended effective March 31, 2015, whereby future retirees will not be eligible to participate in the plan. This plan amendment resulted in a curtailment gain.

The Company disclosed in its consolidated financial statements for the year ended December 31, 2015 that it expected to make contributions to, or benefit payments on behalf of, benefit plans during 2016 as follows: BMP - $686, Outside Director Retirement Plan - $208, and Postretirement Plan - $116.  The Company made contributions of $7 to the Employee Retirement Plan during the three months ended June 30, 2016, and $11 during the six months ended June 30, 2016.  The Company made benefit payments of $41 on behalf of the Outside Director Retirement Plan during the three months ended June 30, 2016, and $82 during the six months ended June 30, 2016, and expects to make the remainder of the estimated net contributions or benefit payments during 2016.  The Company made benefit payments totaling $17 on behalf of the Postretirement Plan during the three months ended June 30, 2016, and $50 during the six months ended June 30, 2016, and expects to make the remainder of the anticipated contributions or benefit payments during 2016.  The Company did not make any defined benefit contributions to, or benefit payments on behalf of, the BMP during the three month or six month periods ended June 30, 2016, however, does expect to make benefit payments on behalf of the BMP during 2016.

14. INCOME TAXES

During the three months ended June 30, 2016 and 2015, the Company's consolidated effective tax rates were 42.2% and 40.9%, respectively. During the six months ended June 30, 2016 and 2015, the Company's consolidated effective tax rates were 42.2% and 40.6%, respectively.  The increase in the consolidated tax rate from 2015 to 2016 was the result of a $68.2 million gain on sale of real estate transaction, which will impact the consolidated tax rate in each quarterly period in 2016.  There were no other significant unusual income tax items during the three-month or six-month periods ended either June 30, 2016 or 2015.

15. PREMISES HELD FOR SALE

On March 16, 2016, the Bank completed the sale of premises held for sale with an aggregate recorded balance of $8,799 at December 31, 2015.  A gain of $68,183 was recognized on this sale.

During the six months ended June 30, 2016, the Bank re-classified certain real estate utilized as a retail branch and principal office of the Company and the Bank to premises held for sale. The aggregate recorded balance of the premises held for sale was $1,379 at June 30, 2016, the outstanding balance upon transfer. On April 14, 2016, a Purchase and Sale Agreement was executed for the property, for a sale price of $12,300. The sale is expected to close in April 2017.

16. SUBSEQUENT EVENTS

Effective August 1, 2016, the Bank changed its name to Dime Community Bank.  The new name more accurately reflects the Bank's evolving business model and will allow the Bank to emphasize its broader geographic and business reach while not abandoning its mission to be in the communities it serves, including the virtual community online.

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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

General

The Holding Company is a Delaware corporation and parent company of the Bank, a New York State chartered stock savings bank.  The Bank maintains its headquarters in the Williamsburg section of Brooklyn, New York and operates twenty-five full service retail banking offices located in the NYC boroughs of Brooklyn, Queens, and the Bronx, and in Nassau County, New York.  The Bank’s principal business is gathering deposits from customers within its market area and via the internet, and investing them primarily in multifamily residential, commercial real estate and mixed use loans, MBS, obligations of the U.S. government and GSEs, and corporate debt and equity securities.  All of the Bank's lending occurs in the greater NYC metropolitan area.

Executive Summary

The Holding Company’s primary business is the ownership of the Bank.  The Company’s consolidated results of operations are dependent primarily on net interest income, which is the difference between the interest income earned on interest-earning assets, such as loans and securities, and the interest expense paid on interest-bearing liabilities, such as deposits and borrowings.  The Bank additionally generates non-interest income such as service charges and other fees, mortgage banking related income, and income associated with BOLI.  Non-interest expense primarily consists of employee compensation and benefits, federal deposit insurance premiums, data processing costs, occupancy and equipment, marketing and other operating expenses.  The Company’s consolidated results of operations are also significantly affected by general economic and competitive conditions (particularly fluctuations in market interest rates), government policies, changes in accounting standards and actions of regulatory agencies.

The Bank's primary strategy is generally to seek to increase its product and service utilization for each individual depositor, and increase its household and deposit market shares in the communities that it serves.  In recent years, particular emphasis has been placed upon growing individual and small business commercial checking account balances. The Bank also actively strives to obtain checking account balances affiliated with the operation of the collateral underlying its mortgage loans, as well as personal deposit accounts from its borrowers. Commencing in the latter half of 2015, the Bank launched an internet banking initiative "Dime Direct." To date, deposits gathered through Dime Direct have primarily been promotional money markets. Given their nature, the Dime Direct deposits are anticipated to carry lower administrative servicing costs than the Bank's traditional retail deposits. The Bank’s primary strategy additionally includes the origination of, and investment in, mortgage loans, with an emphasis on NYC multifamily residential and mixed-use real estate loans.  The Company believes that multifamily residential and mixed-use loans in and around NYC provide several advantages as investment assets.  Initially, they offer a higher yield than investment securities of comparable maturities or terms to repricing.  In addition, origination and processing costs for the Bank’s multifamily residential and mixed use loans are lower per thousand dollars of originations than comparable one-to four-family loan costs.  Further, the Bank’s market area has generally provided a stable flow of new and refinanced multifamily residential and mixed-use loan originations.  In order to address the credit risk associated with multifamily residential and mixed use lending, the Bank has developed underwriting standards that it believes are reliable in order to maintain consistent credit quality for its loans.

The Bank also strives to provide a stable source of liquidity and earnings through the occasional purchase of investment grade securities, seeks to maintain the asset quality of its loans and other investments, and uses portfolio and asset/liability management techniques in an effort to manage the effects of interest rate volatility on its profitability and capital.

Recent Regulatory Developments

Basel III Capital Rules. In July 2013, the Bank’s primary federal regulator, the Federal Deposit Insurance Corporation ("FDIC"), and the Holding Company’s principal regulator, the Board of Governors of the Federal Reserve System, published final rules (the "Basel III Capital Rules") that implement, in part, agreements reached by the Basel Committee on Banking Supervision ("Basel Committee") in "Basel III: A Global Regulatory Framework for More Resilient Banks and Banking Systems" ("Basel III") and imposed new capital requirements on the Bank and the Holding Company, effective January 1, 2015.

The Basel III Capital Rules provide for the following minimum capital to risk-weighted assets ratios as of January 1, 2015: a) 4.5% based upon common equity tier 1 capital ("CET1"); b) 6.0% based upon tier 1 capital; and c) 8.0% based upon total regulatory capital.  A minimum leverage ratio (tier 1 capital as a percentage of total average assets) of 4.0% is also required under the Basel III Capital Rules.  When fully phased in, the Basel III Capital Rules will additionally require institutions to retain a capital conservation buffer, composed of CET1, of 2.5% above these required minimum capital ratio levels.  Banking organizations that fail to maintain the minimum 2.5% capital conservation buffer could face restrictions on capital distributions or discretionary bonus payments to executive officers.  Restrictions would begin phasing in where the banking organization’s capital conservation buffer was below 2.5% at the beginning of a quarter, and distributions and discretionary bonus payments would be completely prohibited if no capital conservation buffer exists.  When the capital conservation buffer is fully phased in on January 1, 2019, the Holding Company and the Bank will effectively have the following minimum capital to risk-weighted assets ratios: a) 7.0% based upon CET1; b) 8.5% based upon tier 1 capital; and c) 10.5% based upon total regulatory capital.

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The Basel III Capital Rules provide for a number of deductions from, and adjustments to, CET1.  These include, for example, the requirement that MSR, deferred tax assets arising from temporary differences that could not be realized through net operating loss carrybacks and significant investments in non-consolidated financial entities be deducted from CET1 to the extent that any one such category exceeds 10% of CET1 or all such items, in the aggregate, exceed 15% of CET1.

Implementation of the deductions from, and other adjustments to, CET1 is being phased-in over a 4-year period (beginning at 40% on January 1, 2015 and an additional 20% per year thereafter). The implementation of the capital conservation buffer commenced on January 1, 2016, with a buffer that increases by 0.625% each subsequent January 1st until it reaches 2.5% on January 1, 2019.

The Basel III Capital Rules prescribe a new standardized approach for risk weightings that expand the risk-weighting categories from the current four Basel I-derived categories (0%, 20%, 50% and 100%) to a larger and more risk-sensitive number of categories, depending on the nature of the assets, generally ranging from 0% for U.S. government and agency securities, to 600% for certain equity exposures, and resulting in higher risk weights for a variety of asset classes.  In particular, the Basel III Capital Rules provide stricter rules related to the risk weighting of past due and certain commercial real estate loans, as well as on some equity investment exposures, and replace the existing credit rating approach for determining the risk weighting of securitization exposures with an alternative approach in which senior securitization tranches are assigned a risk weight associated with the underlying exposure and requiring a banking organization to hold capital for the senior tranche based on the risk weight of the underlying exposures.  Under the revised approach, for subordinate securitization tranches, a banking organization must hold capital for the subordinate tranche, as well as all more senior tranches for which the subordinate tranche provides credit support.

With respect to the Bank, the Basel III Capital Rules revise the "prompt corrective action" ("PCA") regulations adopted pursuant to Section 38 of the Federal Deposit Insurance Act by: (i) introducing a CET1 ratio requirement at each PCA category (other than critically undercapitalized), with the required CET1 ratio being 6.5% for well-capitalized status; (ii) increasing the minimum Tier 1 capital ratio requirement for each category, with the minimum tier 1 capital ratio for well-capitalized status being 8.0% (as compared to the current 6.0%); and (iii) eliminating the current provision that a bank with a composite supervisory rating of 1 may have a 3.0% leverage ratio and still be adequately capitalized. The Basel III Capital Rules do not change the total risk-based capital requirement for any PCA category.

The Basel III Capital Rules will increase the required capital levels of the Bank and will subject the Holding Company to consolidated capital rules. The Bank and Company made the one-time, permanent election to continue to exclude the effects of accumulated other comprehensive income or loss items included in stockholders’ equity for the purposes of determining the regulatory capital ratios.  The following table summarizes the capital ratios calculated under the Basel III Capital Rules framework as of June 30, 2016.

	Bank			Consolidated Company			Basel III Minimum Requirement			Basel III Minimum Requirement Plus 0.625% Buffer(1)			Basel III Minimum Requirement Plus 2.5% Buffer(2)			Well Capitalized Requirement Under FDIC Prompt Corrective Action Framework(3)
Common equity Tier 1 capital to risk weighted assets		11.82	%		11.91	%		4.5	%		5.125	%		7.0	%		6.5	%
Tier 1 Capital to risk weighted assets		11.82			13.53			6.0			6.625			8.5			8.0
Total Capital to risk weighted assets		12.27			13.98			8.0			8.625			10.5			10.0
Tier 1 Capital to average assets (Leverage ratio)		9.13			10.48			4.0			n/a			n/a			5.0

(1) The 0.625% buffer percentage represents the phased-in requirement as of June 30, 2016.

(2) The 2.5% buffer percentage represents the fully phased-in requirement as of January 1, 2019.

(3) Only the Bank is subject to these requirements.

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Implementation of the initial phase capital conservation buffer under the Basel III Capital Rules effective January 1, 2016 did not have a material impact upon the operations of the Bank or Holding Company. Management believes that, as of June 30, 2016, the Bank and the Holding Company would meet all capital categories requirements under the Basel III Capital Rules on a fully phased in basis as if such requirement had been in effect on that date.

Selected Financial Highlights and Other Data

(Dollars in Thousands Except Per Share Amounts)

	At or For the Three Months Ended June 30,						At or For the Six Months Ended June 30,
	2016			2015			2016			2015
Performance and Other Selected Ratios:
Return on Average Assets		0.81	%		1.01	%		2.29	%		1.03	%
Return on Average Stockholders' Equity		8.23			9.78			23.28			9.98
Stockholders' Equity to Total Assets		9.89			10.29			9.89			10.29
Loans to Deposits at End of Period		137.80			146.79			137.80			146.79
Loans to Earning Assets at End of Period		96.09			95.56			96.09			95.56
Net Interest Spread		2.50			2.88			2.57			2.74
Net Interest Margin		2.68			3.05			2.74			2.93
Average Interest Earning Assets to Average Interest Bearing Liabilities
Non-Interest Expense to Average Assets		1.31			1.44			1.35			1.33
Efficiency Ratio		47.75			47.07			48.58			45.31
Effective Tax Rate		42.17			40.93			42.17			40.57
Dividend Payout Ratio		46.67			43.75			16.77			43.75
Per Share Data:
Reported EPS (Diluted)	$	0.30		$	0.32		$	1.67		$	0.64
Cash Dividends Paid Per Share		0.14			0.14			0.28			0.28
Stated Book Value		14.60			12.85			14.60			12.85
Asset Quality Summary:
Net charge-offs (recoveries)	$	47		$	(1,451	)	$	26		$	(1,367	)
Non-performing Loans (including loans held for sale)		4,329			1,292			4,329			1,292
Non-performing Loans/Total Loans		0.08	%		0.03	%		0.08	%		0.03	%
Non-performing Assets	$	5,600		$	2,659		$	5,600		$	2,659
Non-performing Assets/Total Assets		0.10	%		0.06	%		0.10	%		0.06	%
Allowance for Loan Loss/Total Loans		0.36			0.43			0.36			0.43
Allowance for Loan Loss/Non-performing Loans		436.80			1,435.99			436.80			1,435.99
Earnings to Fixed Charges Ratios (1)
Including Interest on Deposits		2.47	x		2.71	x		5.17	x		2.61	x
Excluding Interest on Deposits		4.45			4.40			10.60			3.90

(1) Please refer to Exhibit 12.1 for further detail on the calculation of these ratios.

Critical Accounting Policies

The Company’s policies with respect to: (1) the methodologies it uses to determine the allowance for loan losses (including reserves for loan commitments), and (2) accounting for defined benefit plans, are its most critical accounting policies because they are important to the presentation of the Company’s consolidated financial condition and results of operations, involve a significant degree of complexity and require management to make difficult and subjective judgments which often necessitate assumptions or estimates about highly uncertain matters. The use of different judgments, assumptions or estimates could result in material variations in the Company's consolidated results of operations or financial condition.

Allowance for Loan Losses. The Bank's methods and assumptions utilized to periodically determine its allowance for loan losses are summarized in Note 9 to the Company's condensed consolidated financial statements.

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Accounting for Defined Benefit Plans.  Defined benefit plans are accounted for in accordance with ASC 715, which requires an employer sponsoring a single employer defined benefit plan to recognize the funded status of such benefit plan in its statements of financial condition, measured as the difference between plan assets at fair value (with limited exceptions) and the benefit obligation.  The Company utilizes the services of trained actuaries employed at an independent benefits plan administration entity in order to assist in measuring the funded status of its defined benefit plans.

Liquidity and Capital Resources

The Board of Directors of the Bank has approved a liquidity policy that it reviews and updates at least annually. Senior management is responsible for implementing the policy.  The Bank's Asset Liability Committee ("ALCO") is responsible for general oversight and strategic implementation of the policy, and management of the appropriate departments are designated responsibility for implementing any strategies established by ALCO.  On a daily basis, appropriate senior management receives a current cash position report and one-week forecast to ensure that all short-term obligations are timely satisfied and that adequate liquidity exists to fund future activities.  Reports detailing the Bank's liquidity reserves and forecasted cash flows are presented to appropriate senior management on a monthly basis, and the Board of Directors at each of its meetings. In addition on a monthly basis, a twelve-month liquidity forecast is presented to ALCO in order to assess potential future liquidity concerns.  A forecast of cash flow data for the upcoming 12 months is presented to the Board of Directors on an annual basis.

The Bank's primary sources of funding for its lending and investment activities include deposits, loan and MBS payments, investment security principal and interest payments and advances from the FHLBNY.  The Bank may also sell selected multifamily residential or mixed use real estate loans to private sector secondary market purchasers, and has in the past sold such loans and one to four family residential loans to FNMA.  The Company may additionally issue debt under appropriate circumstances.  Although maturities and scheduled amortization of loans and investments are predictable sources of funds, deposit flows and prepayments on mortgage loans and MBS are influenced by interest rates, economic conditions and competition.

The Bank gathers deposits in direct competition with commercial banks, savings banks and brokerage firms, many among the largest in the nation.  It must additionally compete for deposit monies against the stock and bond markets, especially during periods of strong performance in those arenas.  The Bank's deposit flows are affected primarily by the pricing and marketing of its deposit products compared to its competitors, as well as the market performance of depositor investment alternatives such as the U.S. bond or equity markets.  To the extent that the Bank is responsive to general market increases or declines in interest rates, its deposit flows should not be materially impacted.   However, favorable performance of the equity or bond markets could adversely impact the Bank’s deposit flows.

Retail branch and Internet banking deposits increased $596.0 million during the six months ended June 30, 2016, compared to $274.0 million during the six months ended June 30, 2015.  Within deposits, core deposits (i.e., non-CDs) increased $420.3 million during the six months ended June 30, 2016 and $302.0 million during the six months ended June 30, 2015.  These increases were due primarily to successful gathering efforts tied to promotional money market offerings.  CDs increased $175.7 million during the six months ended June 30, 2016, as a result of promotional offerings during the period.  CDs declined $28.0 million during the six months ended June 30, 2015. The reduction during the six months ended June 30, 2015 reflected attrition of promotional CDs that matured, as the bank de-emphasized gathering and retaining CDs during the period, focusing instead on gathering and retaining money market and checking deposits.

In the event that the Bank should require funds beyond its ability or desire to generate them internally, an additional source of funds is available through its borrowing line at the FHLBNY.  At June 30, 2016, the Bank had an additional potential borrowing capacity of $921.0 million through the FHLBNY, subject to customary minimum FHLBNY common stock ownership requirements (i.e., 4.5% of the Bank's outstanding FHLBNY borrowings).

The Bank decreased its outstanding FHLBNY advances by $149.6 million during the six months ended June 30, 2016, reflecting both the utilization of deposit inflows to fund asset growth and the deployment of the cash proceeds received from the real estate sale during the quarter ended March 31, 2016. The Bank reduced its outstanding FHLBNY advances by $140.0 million during the six months ended June 30, 2015, reflecting both the utilization of deposit inflows to fund asset growth and other operational needs, as well as the prepayment of a $25.0 million, 4.27% fixed-rate advance due to mature in 2016. A prepayment expense of $1.4 million was recognized on the prepayment of the $25.0 million advance.

During the six months ended June 30, 2016, principal repayments totaled $375.6 million on real estate loans (including refinanced loans). During the six months ended June 30, 2015, principal repayments totaled $488.5 million on real estate loans (including refinanced loans) and $1.6 million on MBS, and proceeds from the sale of MBS totaled $24.3 million.  The decrease in principal repayments on real estate loans during the six month period ended June 30, 2016 compared to the six month period ended June 30, 2015 resulted primarily from a decline lower prepayment volume.

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No sales of investment securities or MBS available for sale occurred during the six months ended June 30, 2016. Aggregate proceeds from the sales of investment securities and MBS available for sale totaled $26.4 million during the six months ended June 30, 2015, reflecting the liquidation of virtually all outstanding investment securities and MBS available for sale in March 2015. The securities were sold in order to offset the cash disbursement and expense associated with the prepayment of the $25.0 million FHLBNY advance noted previously in this section. A net gain of $1.4 million was recognized on the sales.

The Bank is subject to minimum regulatory capital requirements imposed by its primary federal regulator.  As a general matter, these capital requirements are based on the amount and composition of an institution's assets. At June 30, 2016, the Bank was in compliance with all applicable regulatory capital requirements and was considered "well-capitalized" for all regulatory purposes.

The Company generally utilizes its liquidity and capital resources primarily to fund the origination of real estate loans, the purchase of real estate loans, mortgage-backed and other securities, the repurchase of Holding Company common stock into treasury, the payment of quarterly cash dividends to holders of the Holding Company's common stock, and the payment of quarterly interest to holders of its outstanding trust preferred debt.  During the six months ended June 30, 2016 and 2015, real estate loan originations totaled $734.1 million and $681.9 million, respectively.  The increase reflected the Company's election to compete more aggressively for new loans during the six months ended June 30, 2016 as a result of an increased loan growth target for the year ending December 31, 2016 versus the year ended December 31, 2015. The Company additionally purchased $152.6 million of loan participations during the six months ended June 30, 2016 in order to deploy liquidity from deposit inflows more profitably.

There were no security purchases during the three months ended June 30, 2016 or 2015, as security purchases were de-emphasized during these periods since the yield on highly graded investment securities was deemed unattractive.

The Holding Company did not repurchase any shares of its common stock during the six months ended June 30, 2016. The Holding Company repurchased 20,000 shares of its common stock during the six months ended June 30, 2015 at an aggregate cost of $300,000. As of June 30, 2016, up to 1,104,549 shares remained available for purchase under authorized share purchase programs.  Based upon the $17.01 per share closing price of its common stock as of June 30, 2016, the Holding Company would utilize $18.8 million in order to purchase all of the remaining authorized shares.

The Holding Company paid $10.3 million in cash dividends on its common stock during the six months ended June 30, 2016, up from $10.1 million during the six months ended June 30, 2015, reflecting an increase of 465,419 in outstanding shares from July 1, 2015 to June 30, 2016.

Contractual Obligations

The Bank is obligated for rental payments under leases on certain of its branches and equipment.  In addition, the Bank generally has outstanding at any time significant borrowings in the form of FHLBNY advances, as well as customer CDs with fixed contractual interest rates.  The Holding Company also has $70.7 million of callable trust preferred borrowings from third parties due to mature in April 2034, which became callable at any time commencing in April 2009.  The Holding Company does not currently intend to call this debt.  The facts and circumstances surrounding these obligations have not changed materially since December 31, 2015.

Off-Balance Sheet Arrangements

As part of its loan origination business, the Bank generally has outstanding commitments to extend credit to third parties, which are granted pursuant to its regular underwriting standards.  Since these loan commitments may expire prior to funding, in whole or in part, the contract amounts are not estimates of future cash flows.

34

The following table presents off-balance sheet arrangements as of June 30, 2016:

	Less than One Year		One Year to Three Years		Over Three Years to Five Years		Over Five Years		Total
	(Dollars in thousands)
Credit Commitments:
Available lines of credit	$	35,336	$	-	$	-	$	-	$	35,336
Other loan commitments		191,245		-		-		-		191,245
Total Off-Balance Sheet Arrangements	$	226,581	$	-	$	-	$	-	$	226,581

Asset Quality

General

At both June 30, 2016 and December 31, 2015, the Company had neither whole loans nor loans underlying MBS that would have been considered subprime loans at origination, i.e., mortgage loans advanced to borrowers who did not qualify for market interest rates because of problems with their income or credit history.  See Note 10 to the condensed consolidated financial statements for a discussion of impaired investment securities and MBS.

Monitoring and Collection of Delinquent Loans

Management of the Bank reviews delinquent loans on a monthly basis and reports to its Board of Directors at each regularly scheduled Board meeting regarding the status of all non-performing and otherwise delinquent loans in the Bank's portfolio.

The Bank's loan servicing policies and procedures require that an automated late notice be sent to a delinquent borrower as soon as possible after a payment is ten days late in the case of multifamily residential or commercial real estate loans, or fifteen days late in connection with one- to four-family or consumer loans.  A second letter is sent to the borrower if payment has not been received within 30 days of the due date.  Thereafter, periodic letters are mailed and phone calls placed to the borrower until payment is received.  When contact is made with the borrower at any time prior to foreclosure, the Bank will attempt to obtain the full payment due or negotiate a repayment schedule with the borrower to avoid foreclosure.

Accrual of interest is generally discontinued on a loan that meets any of the following three criteria:  (i) full payment of principal or interest is not expected; (ii) principal or interest has been in default for a period of 90 days or more (unless the loan is both deemed to be well secured and in the process of collection); or (iii) an election has otherwise been made to maintain the loan on a cash basis due to deterioration in the financial condition of the borrower.  Such non-accrual determination practices are applied consistently to all loans regardless of their internal classification or designation.  Upon entering non-accrual status, the Bank reverses all outstanding accrued interest receivable.

The Bank generally initiates foreclosure proceedings when a loan enters non-accrual status based upon non-payment, and typically does not accept partial payments once foreclosure proceedings have commenced.  At some point during foreclosure proceedings, the Bank procures current appraisal information in order to prepare an estimate of the fair value of the underlying collateral.  If a foreclosure action is instituted and the loan is not brought current, paid in full, or refinanced before the foreclosure action is completed, the property securing the loan is transferred to OREO status.  The Bank generally attempts to utilize all available remedies, such as note sales in lieu of foreclosure, in an effort to resolve non-accrual loans and OREO properties as quickly and prudently as possible in consideration of market conditions, the physical condition of the property and any other mitigating circumstances.  In the event that a non-accrual loan is subsequently brought current, it is returned to accrual status once the doubt concerning collectability has been removed and the borrower has demonstrated performance in accordance with the loan terms and conditions for a period of at least six months.

Non-accrual Loans

Within the Bank's permanent portfolio, fifteen non-accrual loans (excluding deposit overdraft loans) totaled $4.3 million at June 30, 2016, and sixteen non-accrual loans (excluding deposit overdraft loans) totaled $1.6 million at December 31, 2015.  During the six months ended June 30, 2016, five loans totaling $3 million were added to non-accrual status, two non-accrual loans totaling $77,000 were returned to accrual status based upon favorable payment performance, two non-accrual loans totaling $208,000 were fully satisfied according to their contractual terms, two loans totaling $23,000 were charged down to zero as they were deemed uncollectible, and principal amortization of $14,000 was recognized on six non-accrual loans.

35

Impaired Loans

The recorded investment in loans deemed impaired (as defined in Note 8 to the condensed consolidated financial statements) was approximately $12.1 million, consisting of twelve loans, at June 30, 2016, compared to $9.6 million, consisting of nine loans, at December 31, 2015.  During the six months ended June 30, 2016, five new loans totaling $3 million were deemed impaired, two impaired loans totaling $419,000 were fully satisfied according to their contractual terms, and principal amortization totaling $98,000, was recognized on six impaired loans.

The following is a reconciliation of non-accrual and impaired loans as of the dates indicated:

	At June 30, 2016			At December 31,  2015
	(Dollars in Thousands)
Non-accrual loans (excluding non-accrual loans held for sale)	$	4,325		$	1,611
Non-accrual one- to four-family and consumer loans deemed homogeneous loans		(1,017	)		(1,116	)
TDRs retained on accrual status		8,789			9,066
Impaired loans	$	12,097		$	9,561

TDRs

Under ASC 310-40-15, the Bank is required to recognize loans for which certain modifications or concessions have been made as TDRs.  A TDR has been created in the event that any of the following criteria is met:

· For economic or legal reasons related to the debtor's financial difficulties, a concession has been granted that would not have otherwise been considered

· A reduction of interest rate has been made for the remaining term of the loan

· The maturity date of the loan has been extended with a stated interest rate lower than the current market rate for new debt with similar risk

· The outstanding principal amount and/or accrued interest have been reduced

In instances in which the interest rate has been reduced, management would not deem the modification a TDR in the event that the reduction in interest rate reflected either a general decline in market interest rates or an effort to maintain a relationship with a borrower who could readily obtain funds from other sources at the current market interest rate, and the terms of the restructured loan are comparable to the terms offered by the Bank to non-troubled debtors.  One loan for $32,000 was modified during the six month period ending June 30, 2016 in a manner that met the criteria for a TDR.  The Bank did not modify any loans in a manner that met the criteria for a TDR during the six months ended June 30, 2015.

Accrual status for TDRs is determined separately for each TDR in accordance with the policies for determining accrual or non-accrual status that are outlined on page 35.  At the time an agreement is entered into between the Bank and the borrower that results in the Bank's determination that a TDR has been created, the loan can be on either accrual or non-accrual status.  If a loan is on non-accrual status at the time it is restructured, it continues to be classified as non-accrual until the borrower has demonstrated compliance with the modified loan terms for a period of at least six months.  Conversely, if at the time of restructuring the loan is performing (and accruing) it will remain accruing throughout its restructured period, unless the loan subsequently meets any of the criteria for non-accrual status under the Bank’s policy, as disclosed on page 35 and agency regulations.

The Bank never accepts receivables or equity interests in satisfaction of TDRs.

At June 30, 2016, all but one TDR were collateralized by real estate that generated rental income.  At December 31, 2015, all TDRs were collateralized by real estate that generated rental income.  For TDRs that demonstrated conditions sufficient to warrant accrual status, the present value of the expected net cash flows of the underlying property was utilized as the primary means of determining impairment.  Any shortfall in the present value of the expected cash flows calculated at each measurement period (typically quarter-end) compared to the present value of the expected cash flows at the time of the original loan agreement was recognized as either an allocated reserve (in the event that it related to lower expected interest payments) or a charge-off (if related to lower expected principal payments).  For TDRs on non-accrual status, an appraisal of the underlying real estate collateral is deemed the most appropriate measure to utilize when evaluating impairment, and any shortfall in valuation from the recorded balance is accounted for through a charge-off.  In the event that either an allocated reserve or a charge-off is recognized on TDRs, the periodic loan loss provision is impacted.

Please refer to Note 8 to the condensed consolidated financial statements for a further discussion of TDRs.

36

OREO

Property acquired by the Bank, or a subsidiary, as a result of foreclosure on a mortgage loan or a deed in lieu of foreclosure is classified as OREO.  Upon entering OREO status, the Bank obtains a current appraisal on the property and reassesses the likely realizable value (a/k/a fair value) of the property quarterly thereafter.  OREO is carried at the lower of the fair value or book balance, with any write downs recognized through a provision recorded in non-interest expense.  Only the appraised value, or either a contractual or formal marketed value that falls below the appraised value, is used when determining the likely realizable value of OREO at each reporting period.  The Bank typically seeks to dispose of OREO properties in a timely manner.  As a result, OREO properties have generally not warranted subsequent independent appraisals.

OREO properties totaled $18,000 at June 30, 2016 and $148,000 at December 31, 2015. The Bank did not recognize any provisions for losses on OREO properties during the three or six months ended June 30, 2016 or 2015.

The following table sets forth information regarding non-accrual loans and certain other non-performing assets (including OREO) at the dates indicated:

	At June 30, 2016			At December 31, 2015
	(Dollars in Thousands)
One- to four-family residential including condominium  and cooperative apartment	$	487		$	1,113
Multifamily residential and residential mixed use real estate		3,784			287
Commercial real estate and commercial mixed use real estate		54			207
Consumer		4			4
Total non-accrual loans		4,329			1,611
Non-performing TRUPS		1,253			1,236
OREO		18			148
Total non-performing assets		5,600			2,995
Ratios:
Total non-accrual loans to total loans		0.08	%		0.03	%
Total non-performing assets to total assets		0.10			0.06
TDRs and Impaired Loans
TDRs	$	8,789		$	9,273
Impaired loans (1)		12,097			9,561

(1) Amount includes all TDRs at both June 30, 2016 and December 31, 2015.  See the discussion entitled "Impaired Loans" commencing on page 36 for a reconciliation of non-accrual and impaired loans.

Other Potential Problem Loans

·   Loans Delinquent 30 to 89 Days

The Bank had four real estate loans, totaling $535,000, that were delinquent between 30 and 89 days at June 30, 2016, a net reduction of $2.4 million compared to six such loans totaling $3.0 million at December 31, 2015. The 30 to 89 day delinquency levels fluctuate monthly, and are generally considered a less accurate indicator of near-term credit quality trends than non-accrual loans.

Reserve for Loan Commitments

At June 30, 2016 and December 31, 2015, the Bank maintained a reserve of $50,000 associated with unfunded loan commitments accepted by the borrower. This reserve is determined based upon the outstanding volume of loan commitments at each period end.  Any increases or reductions in this reserve are recognized in periodic non-interest expense.

37

Allowance for Loan Losses

The methodology utilized to determine the Company's allowance for loan losses on real estate and consumer loans, along with periodic associated activity, remained constant during the periods ended June 30, 2016 and December 31, 2015.  The following is a summary of the components of the allowance for loan losses as of the following dates:

	At June 30, 2016		At March 31, 2016		At December 31, 2015
	(Dollars in Thousands)
Real Estate Loans:
Impaired loans	$	-	$	-	$	-
Substandard loans not deemed impaired or evaluated individually for impairment		43		353		348
Special Mention loans not deemed impaired		36		77		88
Pass graded loans		18,810		18,064		18,058
Sub-total real estate loans		18,889		18,494		18,494
Consumer loans		20		19		20
TOTAL	$	18,909	$	18,513	$	18,514

Activity related to the allowance for loan losses is summarized for the periods indicated as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
	(Dollars in Thousands)
Net (Charge-offs) recoveries	$	(47	)	$	1,451		$	(26	)	$	1,367
(Credit) Provision		442			(1,135	)		421			(1,307	)

The allowance for loan losses increased $395,000 during the three months ended June 30, 2016, due primarily to a provision of $442,000 recorded during the period, offset by net charge-offs of $47,000. The provision resulted primarily from growth in the pass graded portion of the real estate loan portfolio.

The allowance for loan losses increased $395,000 during the six months ended June 30, 2016, due primarily to a provision of $421,000 recorded during the period. The provision resulted primarily from growth in the pass graded portion of the real estate loan portfolio.

For a further discussion of the allowance for loan losses and related activity during the three-month periods ended June 30, 2016 and 2015, and as of December 31, 2015, please see Note 9 to the condensed consolidated financial statements.  Period-end balances of all Substandard, Special Mention and pass graded real estate loans are summarized in Note 8 to the condensed consolidated financial statements.

Comparison of Financial Condition at June 30, 2016 and December 31, 2015

Assets.  Assets totaled $5.6 billion at June 30, 2016, $523.3 million above their level at December 31, 2015.

Real estate loans increased $511.6 million during the six months ended June 30, 2016.  During the six months ended June 30, 2016, the Bank originated $734.1 million of real estate loans (including refinancing of existing loans), and purchased real estate loan participations totaling $152.6 million, which exceeded the $375.6 million of aggregate amortization on such loans (also including refinancing of existing loans) during the period.

 Cash and due from banks increased $25.8 million during the six months ended June 30, 2016, due to the net proceeds of $75.9 million received from the sale of premises during the three months ended March 31, 2016, offset by approximately $50 million used to reduce borrowed funds.  During the six months ended June 30, 2016, the bank completed the sale of premises held for sale with a book value of $8.8 million at December 31, 2015 and upon sale. Net proceeds of $75.9 million were realized on the sale.  On March 24, 2016, premises with an aggregate book value of $1.4 million were transferred to held for sale. In April 2016, the Bank entered into an agreement to sell the premises for $12.3 million. This sale is currently expected to close in April 2017.

Liabilities.  Total liabilities increased $467.7 million during the six months ended June 30, 2016.  Retail deposits (due to depositors) increased $596.0 million and FHLBNY advances declined $149.6 million during the period.  Please refer to "Part I – Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources" for a discussion of the increases in retail deposits and decline in FHLBNY advances during the six months ended June 30, 2016.  Mortgagor escrow and other deposits increased by $15.2 million as a result of growth of the real estate loan portfolio.

38

Stockholders' Equity.  Stockholders' equity increased $55.7 million during the six months ended June 30, 2016, due primarily to net income of $61.2 million, $2.8 million of equity added from stock option exercises, and a $1.9 million aggregate increase related to either expense amortization or income tax benefits associated with stock benefit plans that added to the cumulative balance of stockholders' equity.  Partially offsetting these items was $10.3 million in cash dividends paid during the period.  The change in accumulated other comprehensive loss was immaterial during the six month period ended June 30, 2016.

Comparison of Operating Results for the Three Months Ended June 30, 2016 and 2015

General.  Net income was $11.2 million during the three months ended June 30, 2016, a decrease of $321,000 from net income of $11.5 million during the three months ended June 30, 2015.  During the comparative period, net interest income increased $2.5 million, and non-interest income increased $628,000.  Offsetting these additions to pre-tax income were increases of $1.7 million in non-interest expense and $1.6 million in the provision for loan losses during the period.  Income tax expense increased $186,000 during the comparative period, as a result of a slightly higher tax rate.

Net Interest Income.  The discussion of net interest income for the three months ended June 30, 2016 and 2015 presented below should be read in conjunction with the following tables, which set forth certain information related to the consolidated statements of income for those periods, and which also present the average yield on assets and average cost of liabilities for the periods indicated.  The average yields and costs were derived by dividing income or expense by the average balance of their related assets or liabilities during the periods represented. Average balances were derived from average daily balances. The yields include fees that are considered adjustments to yields.

Analysis of Net Interest Income

	Three Months Ended June 30,
			2016							2015
	Average Balance		Interest		Average Yield/ Cost			Average Balance		Interest		Average Yield/ Cost
Assets:	(Dollars In Thousands)
Interest-earning assets:
Real estate loans	$	5,138,053	$	47,358		3.69	%	$	4,214,674	$	43,473		4.13	%
Other loans		1,511		24		6.35			1,535		24		5.99
MBS		400		2		2.00			461		2		1.74
Investment securities		20,203		265		5.25			18,491		121		2.62
Federal funds sold and other short-term investments		148,267		721		1.95			100,418		578		2.31
Total interest-earning assets		5,308,434	$	48,370		3.64	%		4,335,579	$	44,198		4.08	%
Non-interest earning assets		201,115							219,802
Total assets	$	5,509,549						$	4,555,381
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest bearing checking accounts	$	84,835	$	61		0.29	%	$	75,739	$	60		0.32	%
Money Market accounts		1,892,046		3,865		0.82			1,335,793		2,441		0.73
Savings accounts		369,266		44		0.05			373,430		45		0.05
CDs		1,010,864		3,627		1.44			916,684		3,124		1.37
Borrowed Funds		1,145,058		5,163		1.81			1,010,119		5,458		2.17
Total interest-bearing liabilities		4,502,069	$	12,760		1.14	%		3,711,765	$	11,128		1.20	%
Non-interest bearing checking accounts		255,922							209,847
Other non-interest-bearing liabilities		206,526							162,141
Total liabilities		4,964,517							4,083,753
Stockholders' equity		545,032							471,628
Total liabilities and stockholders' equity	$	5,509,549						$	4,555,381
Net interest income			$	35,610						$	33,070
Net interest spread						2.50	%						2.88	%
Net interest-earning assets	$	806,365						$	623,814
Net interest margin						2.68	%						3.05	%
Ratio of interest-earning assets to interest-bearing liabilities						117.91	%						116.81	%

39

Rate/Volume Analysis

	Three Months Ended June 30, 2016 Compared to Three Months Ended June 30, 2015 Increase/ (Decrease) Due to:
	Volume			Rate			Total
	(Dollars In thousands)
Interest-earning assets:
Real Estate Loans	$	9,023		$	(5,138	)	$	3,885
Other loans		-			1			1
MBS		-			-			-
Investment securities		17			127			144
Federal funds sold and other short-term investments		254			(112	)		142
Total	$	9,294		$	(5,122	)	$	4,172
Interest-bearing liabilities:
Interest bearing checking accounts	$	7		$	(6	)	$	1
Money market accounts		1,070			354			1,424
Savings accounts		(1	)		-			(1	)
CDs		332			171			503
Borrowed funds		671			(966	)		(295	)
Total	$	2,079		$	(447	)	$	1,632
Net change in net interest income	$	7,215		$	(4,675	)	$	2,540

The Company’s net interest income and net interest margin during the three months ended June 30, 2016 and 2015 were impacted by the following factors:

· During the period January 1, 2009 through June 30, 2016, Federal Open Market Committee monetary policies resulted in the maintenance of the overnight federal funds rate in a range of 0.0% to 0.50%, helping deposit and borrowing costs remain at historically low levels.

· Increased marketplace competition and refinancing activity on real estate loans, particularly during the period January 1, 2012 through June 30, 2016, has resulted in an ongoing reduction in the average yield on real estate loans.

Interest Income.  Interest income was $48.7 million during the three months ended June 30, 2016, an increase of $4.2 million from the three months ended June 30, 2015, primarily reflecting an increase of $3.9 million in interest income on real estate loans. The increased income on real estate loans was attributable to growth of $923.4 million in their average balance during the comparative period, as, pursuant to the Company's growth strategy, new originations significantly exceeded amortization and satisfactions during the period July 1, 2015 through June 30, 2016.  Partially offsetting the higher interest income on real estate loans from the growth in their average balance was a reduction of 44 basis points in their average yield, resulting from both continued low benchmark lending rates and heightened marketplace competition.

Interest Expense.  Interest expense increased $1.6 million, to $12.8 million, during the three months ended June 30, 2016, from $11.1 million during the three months ended June 30, 2015.  The increased interest expense was mainly attributable to growth in money market deposits average balance of $556.3 million, and average cost by 9 basis points. The increase in the money market average balance was due to successful promotional activities.  Offsetting this increase was a $295,000 decline in interest expense on borrowed funds, as a decline in the average rate to 1.81% from 2.17% outweighed the $134.9 million increase in their average balance in the comparative period.

Provision for Loan Losses. The Company recognized a provision for loan losses of $442,000 during the three months ended June 30, 2016 compared to a credit (negative provision) of $1.1 million during the three months ended June 30, 2015.  The increase in loan loss provision resulted mainly from growth in the real estate loan portfolio, offset by the continued improvement in the overall credit quality of the loan portfolio.

Non-Interest Income. Totalnon-interest income increased $628,000 from the three months ended June 30, 2015 to the three months ended June 30, 2016, due to $484,000 of additional income from BOLI related to the receipt of a mortality benefit due to the passing of an insured officer, and $197,000 in additional mortgage and other service fees.

40

Non-Interest Expense.  Non-interest expense was $18.1 million during the three months ended June 30, 2016, an increase of $1.7 million from $16.4 million during the three months ended June 30, 2015, reflecting increases of $625,000 in occupancy and equipment expense, $379,000 in data processing costs, and $353,000 in marketing expense during the comparative period.  The $625,000 increase in occupancy expense was attributable to new leases related to de novo retail branches and a new corporate headquarters.  The $379,000 increase in data processing costs was the result of various technology enhancement initiatives related to customer banking services. The $353,000 increase in marketing expense was tied mainly to deposit gathering initiatives.

Non-interest expense was 1.31% of average assets during the three months ended June 30, 2016, compared to 1.44% during the three months ended June 30, 2015. The decrease resulted from a $954.2 million increase in average assets during the comparative period, offset by the increase of $1.7 million in non-interest expense.

Income Tax Expense.   Income tax expense approximated $8.2 million during the three months ended June 30, 2016, up slightly from $8.0 million during the three months ended June 30, 2015.  The Company's consolidated tax rate was 42.2% during the three months ended June 30, 2016, up from 40.9% during the three months ended June 30, 2015.  The increase in the consolidated tax rate was a result of the $68.2 million gain on sale of real estate transaction, which will impact the consolidated tax rate in each quarterly period in 2016.

Comparison of Operating Results for the Six months Ended June 30, 2016 and 2015

General.  Net income was $61.2 million during the six months ended June 30, 2016, an increase of $37.9 million from net income of $23.3 million during the six months ended June 30, 2015.  During the comparative period, net interest income increased $7.1 million, the provision for loan losses increased by $1.7 million, non-interest income increased $67.1 million and non-interest expense increased $5.7 million. Income tax expense increased $28.7 million during the comparative period, as a result of $66.7 million of additional pre-tax income.

Net Interest Income.  The discussion of net interest income for the six months ended June 30, 2016 and 2015 presented below should be read in conjunction with the following tables, which set forth certain information related to the consolidated statements of income for those periods, and which also present the average yield on assets and average cost of liabilities for the periods indicated.  The average yields and costs were derived by dividing income or expense by the average balance of their related assets or liabilities during the periods represented. Average balances were derived from average daily balances. The yields include fees that are considered adjustments to yields.

41

Analysis of Net Interest Income

	Six Months Ended June 30,
			2016							2015
	Average Balance		Interest		Average Yield/ Cost			Average Balance		Interest		Average Yield/ Cost
Assets:	(Dollars In Thousands)
Interest-earning assets:
Real estate loans	$	4,977,574	$	93,009		3.74	%	$	4,193,548	$	85,261		4.07	%
Other loans		1,466		48		6.55			1,598		48		6.01
MBS		407		4		1.97			11,790		183		3.10
Investment securities		20,210		438		4.33			18,453		290		3.14
Federal funds sold and other short-term investments		132,382		1,382		2.09			93,303		1,228		2.63
Total interest-earning assets		5,132,039	$	94,881		3.70	%		4,318,692	$	87,010		4.03	%
Non-interest earning assets		208,420							219,157
Total assets	$	5,340,459						$	4,537,849
Liabilities and Stockholders' Equity:
Interest-bearing liabilities:
Interest bearing checking accounts	$	82,337	$	117		0.29	%	$	76,413	$	115		0.30	%
Money Market accounts		1,790,974		7,244		0.81			1,257,753		4,356		0.70
Savings accounts		368,487		91		0.05			372,869		91		0.05
CDs		970,936		6,939		1.44			922,362		6,328		1.38
Borrowed Funds		1,163,586		10,249		1.77			1,086,551		12,956		2.40
Total interest-bearing liabilities		4,376,320	$	24,640		1.13	%		3,715,948	$	23,846		1.29	%
Non-interest bearing checking accounts		258,450							201,746
Other non-interest-bearing liabilities		179,597							153,006
Total liabilities		4,814,367							4,070,700
Stockholders' equity		526,092							467,149
Total liabilities and stockholders' equity	$	5,340,459						$	4,537,849
Net interest income			$	70,241						$	63,164
Net interest spread						2.57	%						2.74	%
Net interest-earning assets	$	755,719						$	602,744
Net interest margin						2.74	%						2.93	%
Ratio of interest-earning assets to interest-bearing liabilities						117.27	%						116.22	%

Rate/Volume Analysis

	Six Months Ended June 30, 2016 Compared to Six Months Ended June 30, 2015 Increase/ (Decrease) Due to:
	Volume			Rate			Total
	(Dollars In thousands)
Interest-earning assets:
Real Estate Loans	$	15,304		$	(7,556	)	$	7,748
Other loans		(4	)		4			-
MBS		(144	)		(35	)		(179	)
Investment securities		33			115			148
Federal funds sold and other short-term investments		460			(306	)		154
Total	$	15,649		$	(7,778	)	$	7,871
Interest-bearing liabilities:
Interest bearing checking accounts	$	(8	)	$	(6	)	$	2
Money market accounts		2,024			864			2,888
Savings accounts		(1	)		1			-
CDs		335			276			611
Borrowed funds		804			(3,511	)		(2,707	)
Total	$	3,170		$	(2,376	)	$	794
Net change in net interest income	$	12,479		$	(5,402	)	$	7,077

42

The Company’s net interest income and net interest margin during the six months ended June 30, 2016 and 2015 were impacted by the following factors:

· During the period January 1, 2009 through June 30, 2016, Federal Open Market Committee monetary policies resulted in the maintenance of the overnight federal funds rate in a range of 0.0% to 0.50%, helping deposit and borrowing costs remain at historically low levels.

· Increased marketplace competition and refinancing activity on real estate loans, particularly during the period January 1, 2012 through June 30, 2016, has resulted in an ongoing reduction in the average yield on real estate loans.

Interest Income.  Interest income was $94.9 million during the six months ended June 30, 2016, an increase of $7.9 million from the six months ended June 30, 2015, primarily reflecting increases in interest income of $7.7 million on real estate loans, $148,000 on investment securities, and $154,000 on federal funds sold and other short term investments. The increased interest income on real estate loans reflected growth of $784.0 million in their average balance during the comparative period, as new originations significantly exceeded amortization and satisfactions during the period July 1, 2015 through June 30, 2016. Partially offsetting the higher interest income on real estate loans from the growth in their average balance was a reduction of 33 basis points in their average yield, resulting from both continued low benchmark lending rates and heightened marketplace competition. The increase in interest income on investment securities reflected growth of $1.8 million in their average balance combined with an increase of 119 basis points in their average yield.  The increase in interest income on federal funds sold and other short-term investments reflected an increase of $39.1 million in their average balance, offset by a 54 basis point decline in their average yield during the comparable period.

Interest Expense.  Interest expense approximated $24.6 million during the six months ended June 30, 2016, an increase of $794,000 from the six months ended June 30, 2015, primarily reflecting increases in interest expense of $2.9 million on money market accounts and $611,000 on CDs, offset by a reduction of $2.7 million  in interest expense on borrowed funds. The increase of $2.9 million in interest expense on money market deposits reflected successful promotional activities that increased their average balance by $533.2 million and their average cost by 11 basis points from the six months ended June 30, 2015 to the six months ended June 30, 2016.  The $611,000 increase in interest expense on CDs reflected an increase in their average balance by $48.6 million and their average cost by 6 basis points, as the Bank competed more aggressively for CDs during the first six months of 2016 compared to the first six months in 2015.  Interest expense on borrowings declined $2.7 million due to a reduction of 63 basis points in their average cost, which outweighed the increase in their average balance of $77.0 million for the six months ended June 30, 2016 as compared to the same period in 2015.

Provision for Loan Losses. The Company recognized a provision for loan losses of $421,000 during the six months ended June 30, 2016, compared to a credit (negative provision) for loan losses of $1.3 million during the six months ended June 30, 2015.  The credit (negative provision) recognized during the six months ended June 30, 2015 reflected both continued improvement in the overall credit quality of the loan portfolio from July 1, 2014 through June 30, 2015, and a $1.5 million recovery of previously charged-off amounts from the favorable resolution of the Bank's largest problem loan in this period.  The $421,000 provision for loan losses recognized during the six months ended June 30, 2016 resulted mainly from growth in the real estate loan portfolio, offset by continued improvement in the overall credit quality of the loan portfolio.

Non-Interest Income. Totalnon-interest income increased $67.1 million from the six months ended June 30, 2015 to the six months ended June 30, 2016, due primarily to a gain of $68.2 million recognized on the sale of real estate during the six months ended June 30, 2016 and $387,000 of increased income from BOLI during the comparative period. Partially offsetting these increases were a $1.3 million gain on the sale of MBS, and a decline in service charges and other fees during the comparative period as a result of lower transaction volume.

Non-Interest Expense.  Non-interest expense was $36.0 million during the six months ended June 30, 2016, an increase of $5.8 million from $30.2 million during the six months ended June 30, 2015, primarily reflecting increases of $308,000 in occupancy and equipment expense, $699,000 of data processing costs, $193,0000 in FDIC insurance premiums, and $564,000 in marketing expense during the comparative period. Also contributing to the increase was a non-recurring $3.4 million reduction recognized in salaries and employee benefits from the curtailment of certain postretirement health benefits that occurred in the six month period ended June 30, 2015.  Excluding the impact of the $3.4 million defined benefit curtailment, non-interest expense would have increased by $2.3 million during the comparative period. The $308,000 increase in occupancy and equipment expense was attributable to new leases related to two de novo retail branches and a new corporate headquarters, offset by the accelerated depreciation of some automated teller machine equipment that occurred in the six month period ended June 30, 2015.  The $699,000 increase in data processing costs was the result of various technology enhancement initiatives related to customer banking services. The $193,000 increase in FDIC insurance premiums was attributable to $802.6 million growth in average assets.  The $564,000 increase in marketing expense was attributable to deposit gathering initiatives.  The remaining increase in non-interest expense was experienced in other operating expenses.

43

Non-interest expense was 1.35% of average assets during the six months ended June 30, 2016, and, excluding the non-recurring $3.4 million reduction, 1.48% of average assets during the six months ended June 30, 2015. The decrease was mainly due to the growth in average assets outweighing the growth in non-interest expense.

Income Tax Expense.  Income tax expense approximated $44.7 million during the six months ended June 30, 2016, up from $15.9 million during the six months ended June 30, 2015, due to an increase of $66.7 million in pre-tax income during the comparative period.  The $66.7 million increase in pre-tax income was primarily attributable to the $68.2 million gain on sale of real estate that occurred during the six month period ended June 30, 2016.  The Company's consolidated tax rate was 42.2% during the six months ended June 30, 2016, up from 40.6% during the six months ended June 30, 2015, primarily due to the additional tax related to the $68.2 million gain on sale of real estate.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Quantitative and qualitative disclosures about market risk were presented at December 31, 2015 in Item 7A of the Holding Company's Annual Report on Form 10-K, filed with the SEC on March 11, 2016.  The following is an update of the discussion provided therein.

General.  Virtually all of the Company's market risk continues to reside at the Bank level.  The Bank's largest component of market risk remains interest rate risk.  The Company is not subject to foreign currency exchange or commodity price risk.  At June 30, 2016, the Company owned thirteen mutual fund investments totaling $6.8 million that were designated as trading.  At June 30, 2016, the Company conducted four transactions involving derivative instruments requiring bifurcation in order to hedge interest rate or market risk.

Assets, Deposit Liabilities and Wholesale Funds.  There was no material change in the composition of assets, deposit liabilities or wholesale funds from December 31, 2015 to June 30, 2016.  See "Part I - Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources" for a discussion of deposit and borrowing activity during the period.

Interest Rate Risk Exposure Analysis

Economic Value of Equity ("EVE") Analysis.  In accordance with agency regulatory guidelines, the Bank simulates the impact of interest rate volatility upon EVE using several interest rate scenarios.  EVE is the difference between the present value of the expected future cash flows of the Bank’s assets and liabilities and the value of any off-balance sheet items, such as firm commitments to originate loans, or derivatives, if applicable.

Traditionally, the fair value of fixed-rate instruments fluctuates inversely with changes in interest rates.  Increases in interest rates thus result in decreases in the fair value of interest-earning assets, which could adversely affect the Company's consolidated results of operations in the event they were to be sold, or, in the case of interest-earning assets classified as available-for-sale, reduce the Company's consolidated stockholders' equity, if retained.  The changes in the value of assets and liabilities due to fluctuations in interest rates measure the interest rate sensitivity of those assets and liabilities.

In order to measure the Bank’s sensitivity to changes in interest rates, EVE is calculated under market interest rates prevailing at a given quarter-end ("Pre-Shock Scenario"), and under various other interest rate scenarios ("Rate Shock Scenarios") representing immediate, permanent, parallel shifts in the term structure of interest rates from the actual term structure observed in the Pre-Shock Scenario.  An increase in the EVE is considered favorable, while a decline is considered unfavorable.  The changes in EVE between the Pre-Shock Scenario and various Rate Shock Scenarios due to fluctuations in interest rates reflect the interest rate sensitivity of the Bank’s assets, liabilities, and off-balance sheet items that are included in the EVE.  Management reports the EVE results to the Bank's Board of Directors on a quarterly basis. The report compares the Bank's estimated Pre-Shock Scenario EVE to the estimated EVEs calculated under the various Rate Shock Scenarios.

44

The calculated EVEs incorporate some asset and liability values derived from the Bank’s valuation model, such as those for mortgage loans and time deposits, and some asset and liability values provided by reputable independent sources, such as values for the Bank's MBS portfolio, as well as all borrowings.  The Bank's valuation model makes various estimates regarding cash flows from principal repayments on loans and deposit decay rates at each level of interest rate change.  The Bank's estimates for loan repayment levels are influenced by the recent history of prepayment activity in its loan portfolio, as well as the interest rate composition of the existing portfolio, especially in relation to the existing interest rate environment.  In addition, the Bank considers the amount of fee protection inherent in the loan portfolio when estimating future repayment cash flows.  Regarding deposit decay rates, the Bank tracks and analyzes the decay rate of its deposits over time, with the assistance of a reputable third party, and over various interest rate scenarios.  Such results are utilized in determining estimates of deposit decay rates in the valuation model.  The Bank also generates a series of spot discount rates that are integral to the valuation of the projected monthly cash flows of its assets and liabilities.  The Bank's valuation model employs discount rates that it considers representative of prevailing market rates of interest, with appropriate adjustments it believes are suited to the heterogeneous characteristics of the Bank’s various asset and liability portfolios.  No matter the care and precision with which the estimates are derived, however, actual cash flows could differ significantly from the Bank's estimates, resulting in significantly different EVE calculations.

The analysis that follows presents, as of June 30, 2016 and December 31, 2015, the estimated EVE at both the Pre-Shock Scenario and the +200 Basis Point Rate Shock Scenario. The analysis additionally presents the percentage change in EVE from the Pre-Shock Scenario to the +200 Basis Point Rate Shock Scenario at both June 30, 2016 and December 31, 2015.

	At June 30, 2016								At December 31, 2015
	EVE		Dollar Change			Percentage Change			EVE		Dollar Change			Percentage Change
Rate Shock Scenario	(Dollars in Thousands)
+ 200 Basis Points	$	480,437	$	(74,421	)		-4.8	%	$	515,779	$	(63,058	)		-12.2	%
Pre-Shock Scenario		504,415		-			-			578,837		-			-

The Bank’s Pre-Shock Scenario EVE decreased from $578.8 million at December 31, 2015 to $504.4 million at June 30, 2016. The factors contributing to the less favorable valuation at June 30, 2016 included a decrease in the value of the Bank's real estate loans and an increase in the value of the core deposit liability. The less favorable valuation of real estate loans resulted primarily from a decline in portfolio rate from December 31, 2015 to June 30, 2016, due to amortization and satisfactions of loans carrying above market rates.  The increase in the value of the Bank's core deposit liability reflected growth in higher rate promotional money market accounts during the six months ended June 30, 2016.

The Bank’s EVE in the +200 basis point Rate Shock Scenario decreased from $515.8 million at December 31, 2015 to $480.4 million at June 30, 2016. The factors contributing to the less favorable valuation included the previously noted decrease in the value of the Bank’s real estate loans and increase in the value of the core deposit liability from December 31, 2015 to June 30, 2016. Partially offsetting the decrease was a more favorable valuation on the Bank’s wholesale borrowing portfolio, as the duration of the portfolio increased at June 30, 2016 as a result of the additional $90 million of wholesale borrowings with a weighted average maturity of 5.82 years.

Income Simulation Analysis.  As of the end of each quarterly period, the Bank also monitors the impact of interest rate changes through a net interest income simulation model.  This model estimates the impact of interest rate changes on the Bank's net interest income over forward-looking periods typically not exceeding 36 months (a considerably shorter period than measured through the EVE analysis).  Management reports the net interest income simulation results to the Bank's Board of Directors on a quarterly basis. The following table discloses the estimated changes to the Bank's net interest income over the 12-month period ending June 30, 2017 assuming instantaneous changes in interest rates for the given Rate Shock Scenarios:

Instantaneous Change in Interest rate of:	Percentage Change in Net Interest Income
+ 200 Basis Points		(9.4	)%
+ 100 Basis Points		(5.1	)
-100 Basis Points		10.6

45

Item 4. Controls and Procedures

Management of the Company, with the participation of its Chief Executive Officer and Principal Financial Officer, conducted an evaluation of the effectiveness as of June 30, 2016, of the Company's disclosure controls and procedures, as defined in Rules 13a-15(e) and 15(d)-15(e) under the Exchange Act.  Based upon this evaluation, the Chief Executive Officer and Principal Financial Officer concluded that the Company's disclosure controls and procedures were effective as of June 30, 2016 in ensuring that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC's rules and forms, and that such information is accumulated and communicated to management of the Company as appropriate to allow timely decisions regarding required disclosures.

Changes in Internal Control Over Financial Reporting

There was no change in the Company's internal control over financial reporting that occurred during the Company's last fiscal quarter that has materially affected, or is reasonably likely to materially affect, such controls.

PART II – OTHER INFORMATION

Item 1. Legal Proceedings

In the ordinary course of business, the Company is routinely named as a defendant in or party to various pending or threatened legal actions or proceedings.  Certain of these matters may seek substantial monetary damages.  In the opinion of management, the Company is involved in no actions or proceedings that will have a material adverse impact on its financial condition and results of operations.

Item 1A. Risk Factors

There were no material changes from the risks disclosed in the Risk Factors section of the Company's Annual Report on Form 10-K for the year ended December 31, 2015.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

(c) The Holding Company did not repurchase any shares of its common stock into treasury during the three months ended June 30, 2016.  No existing repurchase programs expired during the three months ended June 30, 2016, nor did the Company terminate any repurchase programs prior to expiration during the period.  As of June 30, 2016, the Holding Company had an additional 1,104,549 shares remaining eligible for repurchase under its twelfth stock repurchase program, which was publicly announced in June 2007.

Item 3. Defaults Upon Senior Securities

None.

Item 4. (Removed and Reserved)

Item 5. Other Information

None.

46

Item 6. Exhibits

Exhibit Number

3(i)	Amended and Restated Certificate of Incorporation of Dime Community Bancshares, Inc. (1)
3(ii)	Amended and Restated Bylaws of Dime Community Bancshares, Inc. (17)
4.1	Amended and Restated Certificate of Incorporation of Dime Community Bancshares, Inc. [See Exhibit 3(i) hereto]
4.2	Amended and Restated Bylaws of Dime Community Bancshares, Inc. [See Exhibit 3(ii) hereto]
4.3	Draft Stock Certificate of Dime Community Bancshares, Inc.  (2)
4.4	Second Amended and Restated Declaration of Trust, dated as of July 29, 2004, by and among Wilmington Trust Company, as Delaware Trustee, Wilmington Trust Company as Institutional Trustee, Dime Community Bancshares, Inc., as Sponsor, the Administrators of Dime Community Capital Trust I and the holders from time to time of undivided beneficial interests in the assets of Dime Community Capital Trust I (4)
4.5	Indenture, dated as of March 19, 2004, between Dime Community Bancshares, Inc. and Wilmington Trust Company, as trustee (4)
4.6	Series B Guarantee Agreement, dated as of July 29, 2004, executed and delivered by Dime Community Bancshares, Inc., as Guarantor and Wilmington Trust Company, as Guarantee Trustee, for the benefit of the holders from time to time of the Series B Capital Securities of Dime Community Capital Trust I (4)
10.1	Amended and Restated Employment Agreement between The Dime Savings Bank of Williamsburgh and Vincent F. Palagiano (10)
10.2	Amended and Restated Employment Agreement between The Dime Savings Bank of Williamsburgh and Michael P. Devine (10)
10.3	Amended and Restated Employment Agreement between The Dime Savings Bank of Williamsburgh and Kenneth J. Mahon (10)
10.4	Employment Agreement between Dime Community Bancshares, Inc. and Vincent F. Palagiano (10)
10.5	Employment Agreement between Dime Community Bancshares, Inc. and Michael P. Devine (10)
10.6	Employment Agreement between Dime Community Bancshares, Inc. and Kenneth J. Mahon (10)
10.7	Form of Employee Retention Agreement by and among The Dime Savings Bank of Williamsburgh, Dime Community Bancorp, Inc. and certain officers (12)
10.8	The Benefit Maintenance Plan of Dime Community Bancorp, Inc. (9)
10.9	Severance Pay Plan of The Dime Savings Bank of Williamsburgh (8)
10.10	Retirement Plan for Board Members of Dime Community Bancorp, Inc. (8)
10.12	Recognition and Retention Plan for Outside Directors, Officers and Employees of Dime Community Bancorp, Inc., as amended by amendments number 1 and 2 (3)
10.13	Form of stock option agreement for Outside Directors under Dime Community Bancshares, Inc. 1996 and 2001    Stock Option Plans for Outside Directors, Officers and Employees and the 2004 Stock Incentive Plan. (3)
10.14	Form of stock option agreement for officers and employees under Dime Community Bancshares, Inc. 1996 and 2001 Stock Option Plans for Outside Directors, Officers and Employees and the 2004 Stock Incentive Plan (3)
10.20	Dime Community Bancshares, Inc. 2001 Stock Option Plan for Outside Directors, Officers and Employees (11)
10.21	Dime Community Bancshares, Inc. 2004 Stock Incentive Plan for Outside Directors, Officers and Employees (7)
10.22	Waiver executed by Vincent F. Palagiano (6)
10.23	Waiver executed by Michael P. Devine (6)
10.24	Waiver executed by Kenneth J. Mahon (6)
10.25	Form of restricted stock award notice for officers and employees under the 2004 Stock Incentive Plan (5)
10.27	Form of restricted stock award notice for outside directors under the 2004 Stock Incentive Plan (5)
10.28	Employee Retention Agreement between The Dime Savings Bank of Williamsburgh, Dime Community Bancshares, Inc.  and Daniel Harris (8)
10.30	Adoption Agreement for Pentegra Services, Inc. Volume Submitter 401(K) Profit Sharing Plan (19)
10.31	Employee Stock Ownership Plan of Dime Community Bancshares, Inc. and Certain Affiliates (8)
10.32	Amendment to the Benefit Maintenance Plan (13)
10.33	Amendments One, Two and Three to the Employee Stock Ownership Plan of Dime Community Bancshares, Inc. and Certain Affiliates (14)
10.34	Dime Community Bancshares, Inc. 2013 Equity And Incentive Plan (15)
10.35	Form of restricted stock award notice for officers and employees under the 2013 Equity and Incentive Plan (16)
10.36	Form of restricted stock award notice for outside directors under the 2013 Equity and Incentive Plan (16)
10.37	The Dime Savings Bank of Williamsburgh 401(K) Savings Plan (19)
10.38	Amendment Number Four to the Employee Stock Ownership Plan of Dime Community Bancshares, Inc. and Certain Affiliates (18)
10.39	Amendment Number One to the Dime Savings Bank of Williamsburgh 401(K) Savings Plan (19)

47

10.40	Retirement and Consulting Agreement between Dime Community Bancshares, Inc. and Michael P. Devine (20)
10.41	Retirement and Consulting Agreement between Dime Community Bancshares, Inc. and Vincent F. Palagiano (21)
10.42	Form of performance share award notice for officers under 2013 Equity and Incentive Plan
12.1	Computation of ratio of earnings to fixed charges
31(i).1	Certification of Chief Executive Officer Pursuant to Rule 13a-14(a)/15d-14(a)
31(i).2	Certification of Principal Financial Officer Pursuant to Rule 13a-14(a)/15d-14(a)
32.1	Certification of Chief Executive Officer Pursuant to 18 U.S.C. 1350
32.2	Certification of Principal Financial Officer Pursuant to 18 U.S.C. 1350
101**	Pursuant to Rule 405 of Regulation S-T, the following financial information from the Company’s Quarterly Report on Form 10-Q for the period ended June 30, 2015 is formatted in XBRL (Extensible Business Reporting Language) interactive data files: (i) the Consolidated Balance Sheets as of June 30, 2015 and December 31, 2014, (ii) the Consolidated Statements of Income for the three-month and six-month periods ended June 30, 2015 and 2014, (iii) the Consolidated Statements of Comprehensive Income for the three- month and six-months periods ended June 30, 2015 and 2014, (iv) the Consolidated Statements of Changes in Stockholders' Equity for the six months ended June 30, 2015 and 2014, (v) the Consolidated Statements of Cash Flows for the six months ended June 30, 2015 and 2014, and (vi) the Notes to Consolidated Financial Statements.

**	Furnished, not filed, herewith.
(1)	Incorporated by reference to the registrant's Transition Report on Form 10-K for the transition period ended December 31, 2002 filed on March 28, 2003.
(2)	Incorporated by reference to the registrant's Annual Report on Form 10-K for the fiscal year ended June 30, 1998 filed on September 28, 1998.
(3)	Incorporated by reference to the registrant's Annual Report on Form 10-K for the fiscal year ended June 30, 1997 filed on September 26, 1997, and the Current Reports on Form 8-K filed on March 22, 2004 and March 29, 2005.
(4)	Incorporated by reference to Exhibits to the registrant’s Registration Statement No. 333-117743 on Form S-4 filed on July 29, 2004.
(5)	Incorporated by reference to the registrant's Current Report on Form 8-K filed on March 22, 2005.
(6)	Incorporated by reference to the registrant's Quarterly Report on Form 10-Q for the quarter ended March 31, 2005 filed on May 10, 2005.
(7)	Incorporated by reference to the registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2008 filed on August 8, 2008.
(8)	Incorporated by reference to the registrant's Annual Report on Form 10-K for the year ended December 31, 2008 filed on March 16, 2009.
(9)	Incorporated by reference to the registrant's Current Report on Form 8-K filed on April 4, 2011.
(10)	Incorporated by reference to the registrant's Quarterly Report on Form 10-Q for the quarter ended March 31, 2011 filed on May 10, 2011.
(11)	Incorporated by reference to the registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2011 filed on August 9, 2011.
(12)	Incorporated by reference to the registrant's Quarterly Report on Form 10-Q for the quarter ended March 31, 2012 filed on May 9, 2012.
(13)	Incorporated by reference to the registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2012 filed on November 13, 2012.
(14)	Incorporated by reference to the registrant's Annual Report on Form 10-K for the year ended December 31, 2012 filed on March 15, 2013.
(15)	Incorporated by reference to the registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2013 filed on August 9, 2013.
(16)	Incorporated by reference to the registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2014 filed on August 5, 2014.
(17)	Incorporated by reference to the registrant's Current Report on Form 8-K filed on October 23, 2014.
(18)	Incorporated by reference to the registrant's Annual Report on Form 10-K for the year ended December 31, 2014 filed on March 16, 2015.
(19)	Incorporated by reference to the registrant's Quarterly Report on Form 10-Q for the quarter ended March 31, 2015 filed on May 7, 2015.
(20)	Incorporated by reference to the registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2015 filed on November 6, 2015.
(21)	Incorporated by reference to the registrant's Current Report on Form 8-K filed on June 30, 2016.

48

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Dime Community Bancshares, Inc.

Dated: August 9, 2016	By: /s/ VINCENT F. PALAGIANO
	Vincent F. Palagiano
	Chairman of the Board and Chief Executive Officer

Dated: August 9, 2016	By: /s/ Michael Pucella
	Michael Pucella
	Executive Vice President and Chief Accounting Officer (Principal Financial Officer)

49

EX-10.42

Exhibit 10.42

Dime Community Bancshares, Inc.

2013 Equity and Incentive Plan

Performance Share Award Notice

Name of Award Recipient Social Security Number

Street Address

City State ZIP Code

This Award Notice is intended to set forth the terms and conditions on which a Performance Share Award has been granted under the Dime Community Bancshares, Inc. 2013 Equity and  Incentive Plan.  Set forth below are the specific terms and conditions applicable to this Performance Share Award.  Attached as Exhibit A are its general terms and conditions.

Grant Date	March 24, 2016
Performance Period*	January 1, 2016 – December 31, 2018
Class of Shares*	Common
No. of Awarded Shares*	See schedule below

*Subject to adjustment as provided in the Plan and the General Terms and Conditions.

The number of shares ultimately awarded to you will be determined upon completion of the performance period, and based upon the relative performance throughout the performance period of two pre-determined corporate metric components, Core Earnings Per Share¹ ("Core EPS") and Return on Average Stockholders' Equity² ("ROE").

For the Core EPS and ROE metrics, the following aggregate achievement levels have been established for the three-year performance period indicated above:

	Core EPS	ROE
Maximum (150% achievement)
125% achievement
Target (100% achievement)
75% achievement
Threshold (50% achievement)

¹ Core earnings per share is determined by adjusting diluted earnings per share, as publicly reported, by any significant income or expense items that are deemed non-recurring or unusual in nature, and are thus not indicative of operating results.

² The significant gain generated from the sale of the corporate headquarters real estate is excludable from the calculation of Return on Average Stockholders' Equity.

Based upon the threshold, target and maximum award opportunities approved for you by the Compensation Committee on March 24, 2016 and the closing price of the Company's common stock of $_____ on the March 24, 2016 grant date, the following table summarizes the share payouts that you would be deemed to have achieved for each component and for each performance level:

Performance level	Core EPS	ROE
Above maximum
Maximum
Target
Threshold
Below threshold

In the event that the performance results fall above the threshold but below target, or above target and below maximum, an interpolated performance payout will be computed and deemed to have been achieved.  This interpolated payout will be derived based upon the achievement ranges noted in the table on the previous page.

By signing where indicated below, Dime Community Bancshares, Inc. (the “Company”) grants this Performance Share Award upon the specified terms and conditions, and the Recipient acknowledges receipt of this Award Notice, including Exhibit A, and agrees to observe and be bound by the terms and conditions set forth herein.

Dime Community Bancshares, Inc.		Award Recipient
By
	Name:  VINCENT F. PALAGIANO	Print Name:
	Title: Chairman of the Board and CEO

EXHIBIT A

Dime Community Bancshares, Inc. 2013 Equity and Incentive Plan

Performance- Share Award Notice

General Terms and Conditions

Section 1.   Size and Type of Award. The number of shares of Common Stock of Dime Community Bancshares, Inc. ("Shares") covered by this Award ("Awarded Shares") is listed on the Performance Share Award Notice..

Section 2.   Delivery of Shares.

(a) Delivery of SharesUpon completion of the applicable performance periodindicated in the Performance Share Award Notice, you will receive such Shares as may have been earnedbased upon the achievement of the specified performance conditions set forth therein. Such determination will be made by the Compensation Committee not later than March 31 of the year following the expiration of the performance period (the “Determination Date”).  A stock certificate evidencing unrestricted ownership of the awarded Shares will be transferred to you as soon as administratively practicable following the Determination Date.

(b) Special Conditions. This Award is subject to the following conditions: (i) no Shares will be deliverable if the threshold performance conditions are not satisfied and (ii)  (ii) except as otherwise provided herein, you must remain remain in continuous service during the performance period indicated on the Performance ShareAward Notice .

(c) Forfeiture. Except as otherwise provided herein, if you terminate service with the Company prior to the end of the performance period , you will forfeit any Awarded Shares that otherwise be deliverable with respect to such period. scheduled to vest on that date..

(d) Accelerated Delivery. Shares that are deliverable pursuant to this Award will be delivered on a pro-rated basis, immediately, and without any further action on your part, in the event of your Retirement, death or Disability or upon the occurrence of a Change in Control. Unless otherwise determined by the Committee, if termination is on account of Retirement, death or Disability, the number Shares deliverable will be equal to the product of (i) the number Shares corresponding to the Company’s accrued liability with respect to such Award as of your termination date or, if lesser, the number of Shares corresponding to the level of performance with respect to the designated metrics through the termination date and (ii) the percentage of the performance period (rounded to the nearest full month) that has been completed as of the date of the event that triggers the accelerated delivery of shares  Upon  a Change in Control, the number of Shares deliverable will be equal to the product of the number of Shares deliverable at the the level of achievement with respect to the designated metrics through the Change in Control effective date (or, if actual performance results cannot be determined as of such date, the number of Shares deliverable at the target level of achievement) and the percentage of the performance period (rounded to the nearest full month) that has been completed as of the Change in Control effective date.  All Shares deliverable pursuant to this paragraph shall be delivered as soon as administratively practicable following the occurrence of a triggering event.

You may designate a Beneficiary to receive any Awarded Shares that vest upon your death using the Beneficiary Designation attached as Appendix A.

(e) Definition of Service. For purposes of determining whether your service as been on a continuous basis, you will be deemed to be in the service of the Company for so long as you serve in any capacity as an employee, officer, non-employee director or consultant of the Company or The Dime Savings Bank of Williamsburgh.

Section 3.   Dividend Equivalents. If, after the Grant and prior to the Determination Date (or such other date Shares are delivered (the “Dividend Equivalent Period”), dividends with respect to the Awarded Shares are declared or paid by the Company, the Participant shall be credited with, and entitled to receive, dividend equivalents in an amount, without interest, equal to the cumulative dividends declared or paid on a Share, if any, during the Dividend Equivalent Period, multiplied by the number of Shares actually delivered. Dividend equivalents shall paid in cash following the Determination Date.

Section 4.   Voting Rights. You will not have voting rights with respect to Shares covered by this Award prior to the actual delivery of Shares following the Determination Date.

Section 5.  Taxes.  Where any person is entitled to receive Shares pursuant to this Award, the Company shall have the right to require such person to pay to the Company the amount of any tax which the Company is required to withhold with respect to such Shares, or, in lieu thereof, to retain, or to sell without notice, a sufficient number of Shares to cover the amount required to be withheld.

Section 6.   Notices.  Any communication required or permitted to be given under the Plan, including any notice, direction, designation, comment, instruction, objection or waiver, shall be in writing and shall be deemed to have been given at such time as it is delivered personally or five (5) days after mailing if mailed, postage prepaid, by registered or certified mail, return receipt requested, addressed to such party at the address listed below, or at such other address as one such party may by written notice specify to the other party:

If the Company:

Dime Community Bancshares, Inc.

209 Havemeyer Street

Brooklyn, New York     11211

Attention:  Corporate Secretary

If to the Recipient, to the Recipient's address as shown in the Company's records.

Section 7.   Restrictions on Transfer.  This Award shall not be subject in any manner to anticipation, alienation or assignment, nor shall such option be liable for or subject to debts, contracts, liabilities, engagements or torts, nor shall it be transferable by the Recipient other than by will or by the laws of descent and distribution or as otherwise permitted by the Plan.  To name a Beneficiary, complete the attached Appendix A and file it with the Corporate Secretary of Dime Community Bancshares, Inc.  The latest Beneficiary designation on file for a Recipient with respect to an outstanding performance-based restricted stock award under this Plan or any other equity compensation plan of the Company will determine the Recipient’s Beneficiary for purposes of this Award.

Section 8.    Successors and Assigns.  This Agreement shall inure to the benefit of and shall be binding upon the Company and the Recipient and their respective heirs, successors and assigns.

Section 9.   Construction of Language.  Whenever appropriate in the Agreement, words used in the singular may be read in the plural, words used in the plural may be read in the singular, and words importing the masculine gender may be read as referring equally to the feminine or the neuter.  Any reference to a section shall be a reference to a section of this Agreement, unless the context clearly indicates otherwise.  Capitalized terms not specifically defined herein shall have the meanings assigned to them under the Plan.

Section 10. Governing Law.  This Agreement shall be construed, administered and enforced according to the laws of the State of New York without giving effect to the conflict of laws principles thereof, except to the extent that such laws are preempted by the federal law. The federal and state courts having jurisdiction in Kings County, New York shall have exclusive jurisdiction over any claim, action, complaint or lawsuit brought under the terms of the Plan.  By accepting any Award granted under this Agreement, the Recipient, and any other person claiming any rights under the Agreement, agrees to submit himself, and any such legal action as he shall bring under the Plan, to the sole jurisdiction of such courts for the adjudication and resolution of any such disputes.

Section 11.  Amendment.  This Agreement may be amended, in whole or in part and in any manner not inconsistent with the provisions of the Plan, at any time and from time to time, by written agreement between the Company and the Recipient. This Agreement may be amended, in whole or in part, by the Compensation Committee of the Board of Directors of Dime Community Bancshares, Inc. without the consent of the Recipient in any manner which the Compensation Committees does not materially adversely affect the Recipient’s rights hereunder.

Section 12. Plan Provisions Control.  This Agreement and the rights and obligations created hereunder shall be subject to all of the terms and conditions of the Plan.  In the event of any conflict between the provisions of the Plan and the provisions of this Agreement, the terms of the Plan, which are incorporated herein by reference, shall control.  By signing this Agreement, the Recipient acknowledges receipt of a copy of the Plan.  The Recipient acknowledges that he or she may not and will not rely on any statement of account or other communication or document issued in connection with the Plan other than the Plan, this Agreement, and any document signed by an authorized representative of the Company that is designated as an amendment of the Plan or this Agreement.

Appendix A to Performance SHARE Award Notice

Dime Community Bancshares, Inc. 2013 Stock Incentive Plan

Beneficiary Designation Form – Performance Shares

GENERAL INFORMATION Use this form to designate the Beneficiary(ies) who may receive Performance ShareAwards that become vested at your death.

Name of Person Making Designation    Social Security Number __  __

BENEFICIARY DESIGNATION Complete sections A and B. If no percentage shares are specified, each Beneficiary in the same class (primary or contingent) shall have an equal share.  If any designated Beneficiary predeceases you, the shares of each remaining Beneficiary in the same class (primary or contingent) shall be increased proportionately.

A PRIMARY BENEFICIARY (IES).  I hereby designate the following person as my primary Beneficiary under the Plan, reserving the right to change or revoke this designation at any time prior to my death:

Name	Address	Relationship	Birth date	Share
					%
					%
					%
				Total  =  100%

B CONTINGENTBENEFICIARY(IES).I hereby designate the following person(s) as my contingent Beneficiary(ies) under the Plan or receive benefits only if all of my primary Beneficiaries should predecease me, reserving the right to change or revoke this designation at any time prior to my death as to all outstanding Performance Share Awards:

Name	Address	Relationship	Birth date	Share
					%
					%
					%
				Total     =     100%

S I G N	H E R E	I understand that this Beneficiary Designation shall be effective only if properly completed and received by the Corporate Secretary of Dime Community Bancshares, Inc. prior to my death, and that it is subject to all of the terms and conditions of the Plan.  I also understand that an effective Beneficiary designation revokes my prior designation(s) with respect to all outstanding Performance Share Awards under this or any prior equity compensation plan of Dime Community Bancshares, Inc.
		Your Signature	Date

EX-12.1

EXHIBIT 12.1

COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS

(in thousands, except ratio of earnings to fixed charges)

The following table sets forth our consolidated ratios of earnings to fixed charges and preferred stock dividends for the periods shown. For purposes of computing the ratios, earnings represent income before taxes, extraordinary items and the cumulative effect of accounting changes, plus fixed charges. Fixed charges represent total interest expense plus an estimate of the interest within rental expense, including and excluding interest on deposits. Currently, the Company has no shares of preferred stock outstanding and have not paid any dividends on preferred stock in the periods shown. Therefore, the ratio of earnings to combined fixed charges and preferred stock dividends is not different from the ratio of earnings to fixed charges.

	Three Months Ended						Six Months Ended
	June 30, 2016			June 30, 2015			June 30, 2016			June 30, 2015
Ratio of Earnings to Fixed Charges (Including Deposits)
Earnings:
Income before income taxes	$	19,381		$	19,516		$	105,905		$	39,219
Add:  Fixed charges, net		13,316			11,409			25,537			24,404
Income before income taxes and fixed charges, net		32,697			30,925			131,442			63,623
Fixed charges
Interest expense	$	12,760		$	11,128		$	24,640		$	23,846
One-third of rental expense		556			281			897			558
Interest on unrecognized tax benefits		-			-			-			-
Total fixed charges	$	13,316		$	11,409		$	25,537		$	24,404
Ratio of Earnings to Fixed Charges		2.46	x		2.71	x		5.15	x		2.61	x

Ratio of Earnings to Fixed Charges (Excluding Deposits)
Earnings:
Income before income taxes	$	19,381		$	19,516		$	105,905		$	39,219
Add:  Fixed charges, net		5,719			5,739			11,146			13,514
Income before income taxes and fixed charges, net		25,100			25,255			117,051			52,733
Fixed charges
Interest expense (excluding deposits)		5,163			5,458			10,249			12,956
One-third of rental expense		556			281			897			558
Interest on unrecognized tax benefits		-			-			-			-
Total fixed charges	$	5,719		$	5,739		$	11,146		$	13,514
Ratio of Earnings to Fixed Charges		4.39	x		4.40	x		10.50	x		3.90	x

EX-31.1

EXHIBIT 31(i).1

CHIEF EXECUTIVE OFFICER CERTIFICATION PURSUANT TO 17 CFR 240.13a-14(a) / 15d-14(a)

I, Vincent F. Palagiano, certify that:

1.    I have reviewed this quarterly report on Form 10-Q of Dime Community Bancshares, Inc.;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter In the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.    The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors:

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonable likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:    August 9, 2016

/s/ VINCENT F. PALAGIANO

Vincent F. Palagiano

Chairman of the Board and Chief Executive Officer

EX-31.2

EXHIBIT 31(i).2

CHIEF EXECUTIVE OFFICER CERTIFICATION PURSUANT TO 17 CFR 240.13a-14(a) / 15d-14(a)

I, Michael Pucella, certify that:

1.    I have reviewed this quarterly report on Form 10-Q of Dime Community Bancshares, Inc.;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter In the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.    The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors:

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonable likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:    August 9, 2016

/s/ MICHAEL PUCELLA

Michael Pucella

Executive Vice President and Chief Accounting Officer (Principal Financial Officer)

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q (the "Report") for the period ended June 30, 2016 of Dime Community Bancshares, Inc., (the "Company") as filed with the Securities and Exchange Commission on the date hereof, I, Vincent F. Palagiano, Chief Executive Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

August 9, 2016
Date
By:	/s/ VINCENT F. PALAGIANO
	Vincent F. Palagiano
	Chairman of the Board and Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q (the "Report") for the period ended June 30, 2016 of Dime Community Bancshares, Inc., (the "Company") as filed with the Securities and Exchange Commission on the date hereof, I, Michael Pucella, Chief Accounting Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

August 9, 2016
Date
By:	/s/ MICHAEL PUCELLA
	Michael Pucella
	Executive Vice President and Chief Accounting Officer (Principal Financial Officer)

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2016	Aug. 09, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	DIME COMMUNITY BANCSHARES INC
Entity Central Index Key	0001005409
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		37,786,988
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jun. 30, 2016

XML

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
ASSETS:
Cash and due from banks	$ 89,927	$ 64,154
Total cash and cash equivalents	89,927	64,154
Investment securities held-to-maturity (estimated fair value of $6,805 and $7,051 at June 30, 2016 and December 31, 2015, respectively)(fully unencumbered)	5,319	5,242
Investment securities available-for-sale, at fair value (fully unencumbered)	3,837	3,756
Mortgage-backed securities available-for-sale, at fair value (fully unencumbered)	406	431
Trading Securities	6,814	10,201
Loans:
Real estate, net	5,206,781	4,695,186
Consumer loans	2,336	1,590
Less allowance for loan losses	(18,909)	(18,514)
Total loans, net	5,190,208	4,678,262
Premises and fixed assets, net	13,800	15,150
Premises held for sale	1,379	8,799
Federal Home Loan Bank of New York ("FHLBNY") capital stock	52,814	58,713
Other real estate owned ("OREO")	18	148
Bank Owned Life Insurance ("BOLI")	85,197	85,019
Goodwill	55,638	55,638
Other assets	50,840	47,359
Total Assets	5,556,197	5,032,872
Due to depositors:
Interest bearing deposits	3,518,631	2,925,129
Non-interest bearing deposits	261,635	259,181
Total deposits	3,780,266	3,184,310
Escrow and other deposits	92,290	77,130
FHLBNY advances	1,017,125	1,166,725
Trust Preferred securities payable	70,680	70,680
Other liabilities	46,225	40,080
Total Liabilities	5,006,586	4,538,925
Commitments and Contingencies
Stockholders' Equity:
Preferred stock ($0.01 par, 9,000,000 shares authorized, none issued or outstanding at June 30, 2016 and December 31, 2015)	0	0
Common stock ($0.01 par, 125,000,000 shares authorized, 53,520,581 shares and 53,326,753 shares issued at June 30, 2016 and December 31, 2015, respectively, and 37,654,771 shares and 37,371,992 shares outstanding at June 30, 2016 and December 31, 2015, respectively)	535	533
Additional paid-in capital	266,984	262,798
Retained earnings	502,569	451,606
Accumulated other comprehensive loss, net of deferred taxes	(8,803)	(8,801)
Unallocated common stock of Employee Stock Ownership Plan ("ESOP")	(2,198)	(2,313)
Unearned Restricted Stock Award common stock	(2,754)	(2,271)
Common stock held by Benefit Maintenance Plan ("BMP")	(9,576)	(9,354)
Treasury stock, at cost (15,865,810 shares and 15,954,761 shares at June 30, 2016 and December 31, 2015, respectively)	(197,146)	(198,251)
Total Stockholders' Equity	549,611	493,947
Total Liabilities And Stockholders' Equity	$ 5,556,197	$ 5,032,872

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CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
ASSETS:
Investment securities held to maturity, fair value	$ 6,805	$ 7,051
Stockholders' Equity:
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	9,000,000	9,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	125,000,000	125,000,000
Common stock, shares issued (in shares)	53,520,581	53,326,753
Common stock, shares outstanding (in shares)	37,654,771	37,371,992
Treasury stock (in shares)	15,865,810	15,954,761

XML

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Interest income:
Loans secured by real estate	$ 47,358	$ 43,473	$ 93,009	$ 85,261
Other loans	24	24	48	48
Mortgage backed securities	2	2	4	183
Investment securities	265	121	438	290
Federal funds sold and other short-term investments	721	578	1,382	1,228
Total interest income	48,370	44,198	94,881	87,010
Interest expense:
Deposits and escrow	7,597	5,670	14,391	10,890
Borrowed funds	5,163	5,458	10,249	12,956
Total interest expense	12,760	11,128	24,640	23,846
Net interest income	35,610	33,070	70,241	63,164
Provision (credit) for loan losses	442	(1,135)	421	(1,307)
Net interest income after provision (credit) for loan losses	35,168	34,205	69,820	64,471
Non-interest income:
Service charges and other fees	758	799	1,443	1,549
Net mortgage banking income	27	41	55	113
Net gain (loss) on securities and other assets	33	(25)	79	1,425
Net gain on the sale of premises held for sale	(4)	0	68,183	0
Income from BOLI	1,043	611	1,603	1,216
Other	448	251	683	675
Total non-interest income	2,305	1,677	72,046	4,978
Non-interest expense:
Salaries and employee benefits	8,686	8,600	17,516	14,499
Stock benefit plan amortization expense	846	940	1,724	1,882
Occupancy and equipment	3,115	2,490	5,742	5,434
Data processing costs	1,256	877	2,451	1,752
Federal deposit insurance premiums	581	576	1,320	1,127
Other	3,608	2,883	7,208	5,536
Total non-interest expense	18,092	16,366	35,961	30,230
Income before income taxes	19,381	19,516	105,905	39,219
Income tax expense	8,173	7,987	44,660	15,912
Net income	$ 11,208	$ 11,529	$ 61,245	$ 23,307
Earnings per Share:
Basic (in dollars per share)	$ 0.30	$ 0.32	$ 1.67	$ 0.65
Diluted (in dollars per share)	$ 0.30	$ 0.32	$ 1.67	$ 0.64

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) [Abstract]
Net income	$ 11,208	$ 11,529	$ 61,245	$ 23,307
Amortization and reversal of net unrealized loss on securities transferred from available-for-sale to held-to-maturity, net of deferred tax expense of $6 and $10 during the three months ended June 30, 2016 and 2015, respectively, and $11 and $21 during the six months ended June 30, 2016 and 2015, respectively	8	12	14	25
Reduction in (adjustment to) non-credit component of other than temporary impairment ("OTTI"), net of deferred tax expense (benefit) of $4 and $(16) during the three months ended June 30, 2016 and 2015, respectively, and $8 and $(12) during the six months ended June 30, 2016 and 2015, respectively	4	(19)	8	(15)
Reclassification adjustment for securities sold during the period, net of income tax expense (benefit) of $2 during the three months ended June 30, 2015 and $(624) during the six months ended June 30, 2015 (reclassified from net gain on securities)	0	2	0	(760)
Net unrealized securities gains (losses) arising during the period, net of deferred tax expense (benefit) of $21 and $(2) during the three months ended June 30, 2016 and 2015, respectively, and $28 and $15 during the six months ended June 30, 2016 and 2015, respectively	26	(4)	34	20
Net unrealized derivative liability loss arising during the period, net of deferred tax benefit of $431 during both the three and six month periods ending June 30, 2016	(526)	0	(526)	0
Change in pension and other postretirement obligations, net of deferred tax expense (benefit) of $191 and $210 during the three months ended June 30, 2016 and 2015, respectively, and $382 and $(58) during the six months ended June 30, 2016 and 2015, respectively	234	257	468	(72)
Comprehensive Income	$ 10,954	$ 11,777	$ 61,243	$ 22,505

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED) [Abstract]
Amortization and reversal of net unrealized loss on securities transferred from available-for-sale to held-to-maturity, deferred tax expense	$ 6	$ 10	$ 11	$ 21
Reduction in (adjustment to) non-credit component of other than temporary impairment ("OTTI") charge, deferred tax expense (benefit)	4	(16)	8	(12)
Reclassification adjustment for securities sold during the period, income tax expense (benefit)		2		(624)
Net unrealized securities gains (losses) arising during the period, deferred tax expense (benefit)	21	(2)	28	15
Net unrealized derivative liability loss arising during the period, deferred tax benefit	431		431
Change in pension and other postretirement obligations, during the period, deferred tax expense (benefit)	$ 191	$ 210	$ 382	$ (58)

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CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Loss, Net of Deferred Taxes [Member]	Unallocated Common Stock of ESOP [Member]	Unearned Restricted Stock Award Common Stock [Member]	Common Stock Held by BMP [Member]	Treasury Stock, at Cost [Member]	Total
Balance at Dec. 31, 2014	$ 529	$ 254,358	$ 427,126	$ (8,547)	$ (2,545)	$ (3,066)	$ (9,164)	$ (198,966)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock options exercised	3	4,053
Excess tax benefit related to stock benefit plans		204
Award distribution							0
Amortization of excess fair value over cost - ESOP stock and stock options expense		541
Release from treasury stock for equity awards, net of return of shares to treasury for forfeited shares		481				(1,084)	(190)	1,006
Net income for the period			23,307						$ 23,307
Cash dividends declared and paid			(10,098)
Other comprehensive loss recognized during the period, net of tax				(802)					(802)
Amortization of earned portion of ESOP stock					116
Amortization of earned portion of restricted stock awards						985
Treasury shares repurchased (20,000 shares during the six months ended June 30, 2015)								(300)	(300)
Balance at Jun. 30, 2015	532	259,637	440,335	(9,349)	(2,429)	(3,165)	(9,354)	(198,260)	477,947
Balance at Dec. 31, 2015	533	262,798	451,606	(8,801)	(2,313)	(2,271)	(9,354)	(198,251)	493,947
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock options exercised	2	2,756
Excess tax benefit related to stock benefit plans		142
Award distribution							1
Amortization of excess fair value over cost - ESOP stock and stock options expense		561
Release from treasury stock for equity awards, net of return of shares to treasury for forfeited shares		727				(1,311)	(223)	1,105
Net income for the period			61,245						61,245
Cash dividends declared and paid			(10,282)
Other comprehensive loss recognized during the period, net of tax				(2)					(2)
Amortization of earned portion of ESOP stock					115
Amortization of earned portion of restricted stock awards						828
Treasury shares repurchased (20,000 shares during the six months ended June 30, 2015)								0	0
Balance at Jun. 30, 2016	$ 535	$ 266,984	$ 502,569	$ (8,803)	$ (2,198)	$ (2,754)	$ (9,576)	$ (197,146)	$ 549,611

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CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED) [Abstract]
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01	$ 0.01	$ 0.01	$ 0.01
Treasury shares repurchased (in shares)	0	0	0	20,000

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CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 61,245	$ 23,307
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Net gain on investment and mortgage backed securities sold	0	(1,384)
Net gain recognized on trading securities	(39)	(41)
Net gain on the sale of OREO	(40)	0
Net gain on sale of premises held for sale	(68,183)	0
Net depreciation, amortization and accretion	1,086	1,602
Stock plan compensation (excluding ESOP)	943	1,015
ESOP compensation expense	561	627
Provision (Credit) for loan losses	421	(1,307)
Increase in cash surrender value of BOLI	(1,119)	(1,216)
Income recognized from mortality benefit on BOLI	(484)	0
Deferred income tax provision (credit)	615	(76)
Reduction in credit related OTTI amortized through interest income	(52)	0
Excess tax benefit from stock benefit plans	(142)	(204)
Changes in assets and liabilities:
Increase in other assets	(4,094)	(784)
Increase (Decrease) in other liabilities	6,038	(425)
Net cash (used in) provided by Operating activities	(3,244)	21,114
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from maturities of investment securities held-to-maturity	0	127
Proceeds from sales of investment securities available-for-sale	0	2,070
Proceeds from the sales of trading securities	3,648	1,337
Proceeds from sales of mortgage backed securities available for sale	0	24,307
Purchases of investment securities available-for-sale	(19)	(2,021)
Acquisition of trading securities	(222)	(1,514)
Principal collected on mortgage backed securities available-for-sale	25	1,577
Proceeds from the sale of loans held for sale previously classified as portfolio loans	0	9,201
Purchases of loans	(152,637)	0
Loans originated, net of repayments	(359,730)	(195,320)
Proceeds from sale of OREO	170	0
Proceeds from surrender of cash surrender value of BOLI	1,425	0
Net proceeds from the sale of premises held for sale	75,899	0
Purchases of fixed assets	(16)	(456)
Redemption of FHLBNY capital stock	5,899	5,679
Net cash used in Investing Activities	(425,558)	(155,013)
CASH FLOWS FROM FINANCING ACTIVITIES:
Increase in due to depositors	595,956	274,015
Increase (decrease) in escrow and other deposits	15,160	(4,682)
Repayments of FHLBNY advances	(2,402,500)	(918,000)
Proceeds from FHLBNY advances	2,252,900	778,000
Proceeds from exercise of stock options	2,900	4,056
Excess tax benefit from stock benefit plans	142	204
Release of stock for benefit plan awards	299	213
Treasury shares repurchased	0	(300)
Cash dividends paid to stockholders	(10,282)	(10,098)
Net cash provided by Financing Activities	454,575	123,408
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	25,773	(10,491)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	64,154	78,437
CASH AND CASH EQUIVALENTS, END OF PERIOD	89,927	67,946
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for income taxes	29,100	17,559
Cash paid for interest	11,770	24,071
Loans transferred to OREO	0	130
Transfer of premises to held for sale	1,379	8,799
Loans transferred to held for sale	0	9,534
Amortization of unrealized loss on securities transferred from available-for-sale to held-to-maturity	25	47
Net (increase) decrease in non-credit component of OTTI	$ 16	$ (27)

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NATURE OF OPERATIONS

6 Months Ended

Jun. 30, 2016

NATURE OF OPERATIONS [Abstract]

NATURE OF OPERATIONS

1. NATURE OF OPERATIONS

The Holding Company is a Delaware corporation and parent company of the Bank, a New York State chartered stock savings bank. The Holding Company's direct subsidiaries are the Bank, 842 Manhattan Avenue Corp., and Dime Community Capital Trust 1.  The Bank's direct subsidiaries are Boulevard Funding Corp., Dime Insurance Agency Inc., DSBW Preferred Funding Corporation, DSBW Residential Preferred Funding Corp., Dime Reinvestment Corp., 195 Havemeyer Corp. and DSB Holdings NY, LLC.

The Bank maintains its headquarters in the Williamsburg section of Brooklyn, New York and operates twenty-five full service retail banking offices located in the New York City ("NYC") boroughs of Brooklyn, Queens, and the Bronx, and in Nassau County, New York.  The Bank’s principal business is gathering deposits from customers within its market area and via the internet, and investing them primarily in multifamily residential, commercial real estate and mixed used loans, as well as mortgage-backed securities ("MBS"), obligations of the U.S. Government and Government Sponsored Enterprises ("GSEs"), and corporate debt and equity securities.  All of the Bank's lending occurs in the greater NYC metropolitan area.

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SUMMARY OF ACCOUNTING POLICIES

6 Months Ended

Jun. 30, 2016

SUMMARY OF ACCOUNTING POLICIES [Abstract]

SUMMARY OF ACCOUNTING POLICIES

2. SUMMARY OF ACCOUNTING POLICIES

In the opinion of management, the accompanying unaudited condensed consolidated financial statements contain all adjustments necessary for a fair presentation of the Company's financial condition as of June 30, 2016 and December 31, 2015, the results of operations and statements of comprehensive income for the three-month and six-month periods ended June 30, 2016 and 2015, and the changes in stockholders' equity and cash flows for the six-month periods ended June 30, 2016 and 2015.  The results of operations for the three-month and six-month periods ended June 30, 2016 are not necessarily indicative of the results of operations for the remainder of the year ending December 31, 2016.  Certain information and note disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been omitted pursuant to the rules and regulations of the U. S. Securities and Exchange Commission ("SEC').

The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Please see "Part I - Item 2.  Management's Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies" for a discussion of areas in the accompanying unaudited condensed consolidated financial statements utilizing significant estimates.

These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements as of and for the year ended December 31, 2015 and notes thereto.

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RECENT ACCOUNTING PRONOUNCEMENTS

6 Months Ended

Jun. 30, 2016

RECENT ACCOUNTING PRONOUNCEMENTS [Abstract]

RECENT ACCOUNTING PRONOUNCEMENTS

3. RECENT ACCOUNTING PRONOUNCEMENTS

In January 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-01, an amendment to Recognition and Measurement of Financial Assets and Financial Liabilities (Subtopic 825-10). The objectives of the ASU are to: (1) require equity investments to be measured at fair value, with changes in fair value recognized in net income, (2) simplify the impairment assessment of equity investments without readily determinable fair values, (3) eliminate the requirement to disclose methods and significant assumptions used to estimate fair value for financial instruments measured at amortized cost on the balance sheet, (4) require the use of the exit price notion when measuring the fair value of financial instruments, and (5) clarify the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. The amendments in this ASU are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. The Company is evaluating the potential impact of ASU 2016-01 on its consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842). ASU 2016-02 requires companies that lease valuable assets to recognize on their balance sheets the assets and liabilities generated by contracts longer than a year. The amendments in this update are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2018, however, early adoption is permitted. The Company is evaluating the potential impact of ASU 2016-02 on the its consolidated financial statements.

In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal Versus Agent Consideration - Reporting Revenue Gross Versus Net. The objective of the ASU is to align the recognition of revenue with the transfer of promised goods or services provided to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The amendments in this ASU are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2017. The Company is evaluating the potential impact on its consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The objectives of the ASU are to simplify accounting for the tax consequences of a stock payment and amend the manner in which excess tax benefits and a business's payments to satisfy the tax obligation for recipients of the shares should be classified. The amendments: (i) allow companies to estimate the number of stock awards they expect to vest, and (ii) revise the withholding requirements for classifying stock awards as equity. The amendments in this ASU are effective for public companies for fiscal years beginning after December 15, 2016, however, early adoption is permitted. The adoption of ASU 2016-09 is not expected to have a material impact on the Company's consolidated financial statements.

In June 2016, the FASB issued ASU No. 2016-013, “Financial Instruments – Credit Losses (Topic 326)”, which requires the measurement of all expected credit losses for financial assets held at the reporting date be based on historical experience, current condition, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates.  This guidance also amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. For the Company, this guidance is effective for fiscal years and interim periods beginning after December 31, 2019. The Company is currently evaluating this guidance to determine the impact on its consolidated financial statements.

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TREASURY STOCK

6 Months Ended

Jun. 30, 2016

TREASURY STOCK [Abstract]

TREASURY STOCK

4. TREASURY STOCK

The Holding Company did not repurchase any of its common stock into treasury during the three or six month periods ended June 30, 2016, or the three-month period ended June 30, 2015.  The Holding Company repurchased 20,000 shares of its common stock into treasury during the six months ended June 30, 2015 at a weighted average cost of $15.00 per share.

On March 24, 2016, 28,044 shares of the Holding Company's common stock were released from treasury in order to satisfy potential future performance-based equity awards.  The closing price of the Holding Company's common stock on that date was $17.35, and the shares were released utilizing the average historical cost method.

On April 29, 2016, 60,675 shares of the Holding Company's common stock were released from treasury in order to fulfill benefit obligations under the 2013 Equity and Incentive Plan, and 12,424 shares of treasury stock were released in order to fulfill benefit obligations under the BMP.  The closing price of the Holding Company's common stock on that date was $18.11, and the shares were released utilizing the average historical cost method.

Shares either released from treasury stock for earned equity awards or returned to treasury stock due to forfeited equity awards were otherwise immaterial during the three-month and six-month periods ended June 30, 2016 and 2015.

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OTHER COMPREHENSIVE INCOME (LOSS)

6 Months Ended

Jun. 30, 2016

OTHER COMPREHENSIVE INCOME (LOSS) [Abstract]

OTHER COMPREHENSIVE INCOME (LOSS)

5. OTHER COMPREHENSIVE INCOME (LOSS)

The before and after tax amounts allocated to each component of other comprehensive income (loss) are presented in the table below.  Reclassification adjustments related to securities available-for-sale are included in the line entitled net gain (loss) on securities and other assets in the accompanying condensed consolidated statements of income.

	Pre-tax Amount			Tax Expense (Benefit)			After tax Amount
Three Months Ended June 30, 2016
Securities held-to maturity and transferred securities:
Change in non-credit component of OTTI	$	8		$	4		$	4
Change in unrealized loss on securities transferred to held-to-maturity		14			6			8
Total securities held-to-maturity and transferred securities		22			10			12
Securities available-for-sale:
Change in net unrealized gain during the period		47			21			26
Total securities available-for-sale		47			21			26
Defined benefit plans:
Reclassification adjustment for expense included in salaries and employee benefits expense		425			191			234
Total defined benefit plans		425			191			234
Derivatives:
Change in unrealized loss on derivative liability		(957	)		(431	)		(526	)
Total derivatives		(957	)		(431	)		(526	)
Total other comprehensive (loss)	$	(463	)	$	(209	)	$	(254	)
Three Months Ended June 30, 2015
Securities held-to-maturity and transferred securities:
Change in non-credit component of OTTI	$	(35	)	$	(16	)	$	(19	)
Change in unrealized loss on securities transferred to held-to-maturity		22			10			12
Total securities held-to-maturity and transferred securities		(13	)		(6	)		(7	)
Securities available-for-sale:
Reclassification adjustment for net gains included in net gain (loss) on securities and other assets		4			2			2
Change in net unrealized gain during the period		(8	)		(4	)		(4	)
Total securities available-for-sale		(4	)		(2	)		(2	)
Defined benefit plans:
Reclassification adjustment for expense included in salaries and employee benefits expense		467			210			257
Total defined benefit plans		467			210			257
Total other comprehensive income	$	450		$	202		$	248

	Pre-tax Amount			Tax Expense (Benefit)			After tax Amount
Six Months Ended June 30, 2016
Securities held-to maturity and transferred securities:
Change in non-credit component of OTTI	$	16		$	8		$	8
Change in unrealized loss on securities transferred to held-to-maturity		25			11			14
Total securities held-to-maturity and transferred securities		41			19			22
Securities available-for-sale:
Change in net unrealized gain during the period		62			28			34
Total securities available-for-sale		62			28			34
Defined benefit plans:
Reclassification adjustment for expense included in salaries and employee benefits expense		850			382			468
Total defined benefit plans		850			382			468
Derivatives:
Change in unrealized loss on derivative liability		(957	)		(431	)		(526	)
Total derivatives		(957	)		(431	)		(526	)
Total other comprehensive loss	$	(4	)	$	2		$	(2	)
Six Months Ended June 30, 2015
Securities held-to-maturity and transferred securities:
Change in non-credit component of OTTI	$	(27	)	$	(12	)	$	(15	)
Change in unrealized loss on securities transferred to held-to-maturity		46			21			25
Total securities held-to-maturity and transferred securities		19			9			10
Securities available-for-sale:
Reclassification adjustment for net gains included in net gain (loss) on securities and other assets		(1,384	)		(624	)		(760	)
Change in net unrealized gain during the period		35			15			20
Total securities available-for-sale		(1,349	)		(609	)		(740	)
Defined benefit plans:
Reclassification adjustment for expense included in salaries and employee benefits expense		934			420			514
Change in the net actuarial gain or loss		(1,064	)		(478	)		(586	)
Total defined benefit plans		(130	)		(58	)		(72	)
Total other comprehensive income	$	(1,460	)	$	(658	)	$	(802	)

Activity in accumulated other comprehensive gain (loss), net of tax, was as follows:

	Securities Held-to- Maturity and Transferred Securities			Securities Available- for-Sale			Defined Benefit Plans			Derivative Liability			Total Accumulated Other Comprehensive Gain (Loss)
Balance as of January 1, 2016	$	(760	)	$	(122	)	$	(7,919	)	$	-		$	(8,801	)
Other comprehensive income (loss) before reclassifications		22			34			-			(526	)		(470	)
Amounts reclassified from accumulated other comprehensive loss		-			-			468			-			468
Net other comprehensive income (loss) during the period		22			34			468			(526	)		(2	)
Balance as of June 30, 2016	$	(738	)	$	(88	)	$	(7,451	)	$	(526	)	$	(8,803	)
Balance as of January 1, 2015	$	(826	)	$	736		$	(8,457	)	$	-		$	(8,547	)
Other comprehensive income (loss) before reclassifications		10			20			(586	)		-			(556	)
Amounts reclassified from accumulated other comprehensive loss		-			(760	)		514			-			(246	)
Net other comprehensive income (loss) during the period		10			(740	)		(72	)		-			(802	)
Balance as of June 30, 2015	$	(816	)	$	(4	)	$	(8,529	)	$	-		$	(9,349	)

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EARNINGS PER SHARE ("EPS")

6 Months Ended

Jun. 30, 2016

EARNINGS PER SHARE ("EPS") [Abstract]

EARNINGS PER SHARE ("EPS")

6. EARNINGS PER SHARE ("EPS")

Basic EPS is computed by dividing income attributable to common stock by the weighted-average common shares outstanding during the reporting period.  Diluted EPS is computed using the same method as basic EPS, but reflects the potential dilution that would occur if "in the money" stock options were exercised and converted into common stock.  In determining the weighted average shares outstanding for basic and diluted EPS, treasury stock and unallocated ESOP shares are excluded.  Vested restricted stock award shares are included in the calculation of the weighted average shares outstanding for basic and diluted EPS.  Unvested restricted stock award shares are recognized as a special class of securities under ASC 260.

The following is a reconciliation of the numerators and denominators of basic EPS and diluted EPS for the periods presented:

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Net income per the Consolidated Statements of Income	$	11,208		$	11,529		$	61,245		$	23,307
Less: Dividends paid and earnings allocated to participating securities		(24	)		(33	)		(55	)		(73	)
Income attributable to common stock	$	11,184		$	11,496		$	61,190		$	23,234
Weighted average common shares outstanding, including participating securities		36,946,082			36,412,733			36,874,535			36,344,359
Less: weighted average participating securities		(192,525	)		(245,046	)		(202,885	)		(266,424	)
Weighted average common shares outstanding		36,753,557			36,167,687			36,671,650			36,077,935
Basic EPS	$	0.30		$	0.32		$	1.67		$	0.65
Income attributable to common stock	$	11,184		$	11,496		$	61,190		$	23,234
Weighted average common shares outstanding		36,753,557			36,167,687			36,671,650			36,077,935
Weighted average common equivalent shares outstanding		65,028			91,690			69,420			80,886
Weighted average common and equivalent shares outstanding		36,818,585			36,259,377			36,741,070			36,158,821
Diluted EPS	$	0.30		$	0.32		$	1.67		$	0.64

Common equivalent shares resulting from the dilutive effect of "in-the-money" outstanding stock options are calculated based upon the excess of the average market value of the Holding Company's common stock over the exercise price of outstanding in-the-moneystock options during the period.

There were 80,000 and 126,453 weighted-average stock options outstanding for the three-month periods ended June 30, 2016 and 2015, respectively, which were not considered in the calculation of diluted EPS since their exercise prices exceeded the average market price during the period.  There were 80,000 and 136,292 weighted-average stock options outstanding for the six-month periods ended June 30, 2016 and 2015, respectively, which were not considered in the calculation of diluted EPS since their exercise prices exceeded the average market price during the period.

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ACCOUNTING FOR STOCK BASED COMPENSATION

6 Months Ended

Jun. 30, 2016

ACCOUNTING FOR STOCK BASED COMPENSATION [Abstract]

ACCOUNTING FOR STOCK BASED COMPENSATION

7. ACCOUNTING FOR STOCK BASED COMPENSATION

During the three-month and six-month periods ended June 30, 2016 and 2015, the Holding Company and Bank maintained the Dime Community Bancshares, Inc. 2001 Stock Option Plan for Outside Directors, Officers and Employees, the 2004 Stock Incentive Plan and the 2013 Equity and Incentive Plan (collectively, the "Stock Plans"), which are discussed more fully in Note 14 to the Company's audited consolidated financial statements for the year ended December 31, 2015, and which are subject to the accounting requirements of ASC 505-50 and ASC 718.

Stock Option Awards

Combined activity related to stock options granted under the Stock Plans during the periods presented was as follows:

	At or for the Three Months Ended June 30,						At or for the Six Months Ended June 30,
	2016			2015			2016			2015
Options outstanding – beginning of period		465,246			905,780			465,246			979,916
Options granted		-			-			-			-
Options exercised		(193,828	)		(259,579	)		(193,828	)		(274,355	)
Options that expired prior to exercise		-			-			-			(59,360	)
Options outstanding – end of period		271,418			646,201			271,418			646,201
Intrinsic value of options exercised	$	732		$	300		$	732		$	384
Compensation expense recognized		-			8			-			31
Remaining unrecognized compensation expense		-			-			-			-
Intrinsic value of outstanding options at period end		553			1,632			553			1,632
Intrinsic value of vested options at period end		553			1,632			553			1,632
Weighted average exercise price of vested options – end of period		15.32			14.57			15.32			14.57

There were no grants of stock options during the three-month and six-month periods ended June 30, 2016 and 2015.

Restricted Stock Awards

The Company, from time to time, issues restricted stock awards to outside directors and certain officers under the 2004 Stock Incentive Plan or 2013 Equity and Incentive Plan. Typically, awards to outside directors fully vest on the first anniversary of the grant date, while awards to officers vest in equal annual installments over a four-year period.

The following is a summary of activity related to the restricted stock awards granted under the 2004 Stock Incentive Plan or 2013 Equity and Incentive Plan during the periods indicated:

	At or for the Three Months Ended June 30,						At or for the Six Months Ended June 30,
	2016			2015			2016			2015
Unvested allocated shares – beginning of period		222,142			285,610			223,894			289,660
Shares granted		60,675			68,069			60,675			68,069
Shares vested		(115,135	)		(128,327	)		(116,001	)		(132,377	)
Shares forfeited		(12,863	)		(980	)		(13,749	)		(980	)
Unvested allocated shares – end of period		154,819			224,372			154,819			224,372
Compensation recorded to expense	$	390		$	455		$	828		$	984

Performance Based Equity Awards

During the six months ended June 30, 2016, the Company established a long term incentive award program to certain officers that meets the criteria for equity-based accounting.  For each award, threshold (50% of target), target (100% of target) and maximum (150% of target) payment opportunities are eligible to be earned over a three-year performance period based on the Company's relative performance on certain measurement goals that were established at the onset of the performance period and cannot be altered subsequently.

The following table summarizes these awards as of the period indicated:

	At or for the Three Months Ended June 30, 2016			At or for the Six Months Ended June 30, 2016
Maximum aggregate share payout – beginning of period		28,044			28,044
Shares forfeited		(3,312	)		(3,312	)
Maximum aggregate share payout – end of period		24,732			24,732
Minimum aggregate share payout		-			-
Likely aggregate share payout		16,488			16,488
Compensation expense recognized	$	21		$	21

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LOANS RECEIVABLE AND CREDIT QUALITY

6 Months Ended

Jun. 30, 2016

LOANS RECEIVABLE AND CREDIT QUALITY [Abstract]

LOANS RECEIVABLE AND CREDIT QUALITY

8. LOANS RECEIVABLE AND CREDIT QUALITY

Loans are reported at the principal amount outstanding, net of unearned fees or costs and the allowance for loan losses.  Interest income on loans is recorded using the level yield method.  Under this method, discount accretion and premium amortization are included in interest income.  Loan origination fees and certain direct loan origination costs are deferred and amortized as yield adjustments over the contractual loan terms.

Credit Quality Indicators:

On a quarterly basis, the Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors.  The Company analyzes loans individually by classifying them as to credit risk.  This analysis includes all loans, such as multifamily residential, mixed use residential (i.e., loans in which the aggregate rental income of the underlying collateral property is generated from both residential and commercial units, but the majority of such income is generated from the residential units), mixed use commercial real estate (i.e.,loans in which the aggregate rental income of the underlying collateral property is generated from both residential and commercial units, but the majority of such income is generated from the commercial units), and commercial real estate loans, as well as one-to four family residential and cooperative and condominium apartment loans. Prior to April 1, 2016, the analysis of one-to-four family residential and cooperative and condominium apartment loans included only loans with balances in excess of the Fannie Mae (“FNMA”) conforming loan limits for high-cost areas such as the Bank’s primary lending area (“FNMA Limits”) that were deemed to meet the definition of impaired. The Company uses the following definitions for risk ratings:

Special Mention.  Loans classified as special mention have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Bank's credit position at some future date.

Substandard.  Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.

Doubtful.  Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of then existing facts, conditions, and values, highly questionable and improbable.

The Bank had no loans classified as doubtful as of June 30, 2016 or December 31, 2015. All real estate loans not classified as Special Mention or Substandard were deemed pass loans at both June 30, 2016 and December 31, 2015.

The following is a summary of the credit risk profile of real estate loans (including deferred costs) by internally assigned grade as of the dates indicated:

Balance at June 30, 2016
Grade	One- to Four- Family Residential, Including Condominium and Cooperative Apartment		Multifamily Residential and Residential Mixed Use		Commercial Mixed Use Real Estate		Commercial Real Estate		Total Real Estate Loans
Pass	$	72,366	$	4,205,375	$	385,432	$	510,971	$	5,174,144
Special Mention		935		5,068		2,146		1,230		9,379
Substandard		2,151		8,967		5,534		6,606		23,258
Doubtful		-		-		-		-		-
Total	$	75,452	$	4,219,410	$	393,112	$	518,807	$	5,206,781

Balance at December 31, 2015
Grade	One- to Four-Family Residential, Including Condominium and Cooperative Apartment		Multifamily Residential and Residential Mixed Use		Commercial Mixed Use Real Estate		Commercial Real Estate		Total Real Estate Loans
Not Graded(1)	$	7,698	$	-	$	-	$	-	$	7,698
Pass		61,256		3,743,298		370,110		473,242		4,647,906
Special Mention		945		9,759		1,622		4,857		17,183
Substandard		2,196		6,850		5,543		7,810		22,399
Doubtful		-		-		-		-		-
Total	$	72,095	$	3,759,907	$	377,275	$	485,909	$	4,695,186

⁽¹⁾ Amount comprised of fully performing one- to four-family residential and condominium and cooperative unit loans with balances equal to or less than the FNMA Limits.

For consumer loans, the Company evaluates credit quality based on payment activity.  Consumer loans that are 90 days or more past due are placed on non-accrual status, while all remaining consumer loans are classified and evaluated as performing.

The following is a summary of the credit risk profile of consumer loans by internally assigned grade:

Grade	Balance at June 30, 2016		Balance at December 31, 2015
Performing	$	2,332	$	1,586
Non-accrual		4		4
Total	$	2,336	$	1,590

The following is a breakdown of the past due status of the Company's investment in loans (excluding accrued interest and loans held for sale) as of the dates indicated:

At June 30, 2016
	30 to 59 Days Past Due		60 to 89 Days Past Due		Loans 90 Days or More Past Due and Still Accruing Interest		Non- accrual (1)		Total Past Due		Current		Total Loans
Real Estate:
One- to four-family residential, including condominium and cooperative apartment	$	-	$	154	$	-	$	487	$	641	$	74,811	$	75,452
Multifamily residential and residential mixed use		85		-		4,344		3,784		8,213		4,211,197		4,219,410
Commercial mixed use real estate		116		-		190		54		360		392,752		393,112
Commercial real estate		180		-		-		-		180		518,627		518,807
Total real estate	$	381	$	154	$	4,534	$	4,325	$	9,394	$	5,197,387	$	5,206,781
Consumer	$	-	$	-	$	-	$	4	$	-	$	2,332	$	2,336

⁽¹⁾ Includes all loans on non-accrual status regardless of the number of days such loans were delinquent as of June 30, 2016.

At December 31, 2015
	30 to 59 Days Past Due		60 to 89 Days Past Due		Loans 90 Days or More Past Due and Still Accruing Interest		Non- accrual  (1)		Total Past Due		Current		Total Loans
Real Estate:
One- to four-family residential, including condominium and cooperative apartment	$	127	$	-	$	625	$	1,113	$	1,865	$	70,230	$	72,095
Multifamily residential and residential mixed use		2,235		-		2,514		287		5,036		3,754,871		3,759,907
Commercial mixed use real estate		-		406		406		-		812		376,463		377,275
Commercial real estate		200		-		987		207		1,394		484,515		485,909
Total real estate	$	2,562	$	406	$	4,532	$	1,607	$	9,107	$	4,686,079	$	4,695,186
Consumer	$	1	$	1	$	-	$	4	$	6	$	1,584	$	1,590

⁽¹⁾ Includes all loans on non-accrual status regardless of the number of days such loans were delinquent as of December 31, 2015.

Accruing Loans 90 Days or More Past Due

The Bank continued accruing interest on eight real estate loans with an aggregate outstanding balance of $4,534 at June 30, 2016, and twelve real estate loans with an aggregate outstanding balance of $4,532 at December 31, 2015, all of which were 90 days or more past due on their respective contractual maturity dates. These loans continued to make monthly payments consistent with their initial contractual amortization schedule exclusive of the balloon payments due at maturity.  These loans were well secured and were expected to be refinanced, and, therefore, remained on accrual status and were deemed performing assets at the dates indicated above.

Troubled Debt Restructurings ("TDRs")

The following table summarizes outstanding TDRs by underlying collateral type as of the dates indicated:

	As of June 30, 2016				As of December 31, 2015
	No. of Loans		Balance		No. of Loans		Balance
One- to four-family residential, including  condominium and cooperative apartment		1	$	32		2	$	598
Multifamily residential and residential mixed use		4		1,057		3		696
Commercial mixed use real estate		1		4,304		1		4,344
Commercial real estate		1		3,396		2		3,635
Total real estate		7	$	8,789		8	$	9,273

The following table summarizes outstanding TDRs by accrual status as of the dates indicated:

	As of June 30, 2016				As of December 31, 2015
	No. of Loans		Balance		No. of Loans		Balance
Outstanding principal balance at period end		7	$	8,789		8	$	9,273
TDRs on accrual status at period end		7		8,789		7		9,066
TDRs on non-accrual status at period end		-		-		1		207

Accrual status for TDRs is determined separately for each TDR in accordance with the Bank’s policies for determining accrual or non-accrual status.  At the time an agreement is entered into between the Bank and the borrower that results in the Bank's determination that a TDR has been created, the loan can be on either accrual or non-accrual status.  If a loan is on non-accrual status at the time it is restructured, it continues to be classified as non-accrual until the borrower has demonstrated compliance with the modified loan terms for a period of at least six months.  Conversely, if at the time of restructuring the loan is performing (and accruing), it will remain accruing throughout its restructured period, unless the loan subsequently meets any of the criteria for non-accrual status under the Bank’s policy and agency regulations.

The Company has not restructured troubled consumer loans, as its consumer loan portfolio has not experienced any problem issues warranting restructuring.  Therefore, all TDRs were collateralized by real estate at both June 30, 2016 and December 31, 2015.

The Company modified one one- to four-family residential loan in a manner that met the criteria of a TDR during the three-month and six-month periods ended June 30, 2016. There were no loans modified in a manner that met the criteria of a TDR during the three-month period and six-month periods ended June 30, 2015.

The Bank's allowance for loan losses at June 30, 2016 and December 31, 2015 did not reflect any allocated reserve associated with TDRs.

As of June 30, 2016 and December 31, 2015, the Bank had no loan commitments to borrowers with outstanding TDRs.

A TDR is considered to be in payment default once it is 90 days contractually past due under the modified terms.  All TDRs are considered impaired loans and are evaluated individually for measurable impairment, if any.

There were no TDRs which defaulted within twelve months following the modification during the three-month and six-month periods ended June 30, 2016 or 2015 (thus no impact to the allowance for loan losses during those periods).

Impaired Loans

A loan is considered impaired when, based on then current information and events, it is probable that all contractual amounts due will not be collected in accordance with the terms of the loan.  Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due.  Loans that experience insignificant payment delays or shortfalls generally are not classified as impaired.  Management determines the significance of payment delays and shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed.

The Bank considers TDRs and non-accrual multifamily residential and commercial real estate loans, along with non-accrual one- to four-family loans in excess of the FNMA Limits, to be impaired.  Non-accrual one-to four-family loans equal to or less than the FNMA Limits, as well as all consumer loans, are considered homogeneous loan pools and are not required to be evaluated individually for impairment unless considered a TDR.

Impairment is typically measured using the difference between the outstanding loan principal balance and either: 1) the likely realizable value of a note sale; 2) the fair value of the underlying collateral, net of likely disposal costs, if repayment is expected to come from liquidation of the collateral; or 3) the present value of estimated future cash flows (using the loan’s pre-modification rate for some of the performing TDRs).  If a TDR is substantially performing in accordance with its restructured terms, management will look to either the potential net liquidation proceeds of the underlying collateral or the present value of the expected cash flows from the debt service in measuring impairment (whichever is deemed most appropriate under the circumstances).  If a TDR has re-defaulted, generally the likely realizable net proceeds from either a note sale or the liquidation of the collateral is considered when measuring impairment.  Measured impairment is either charged off immediately or, in limited instances, recognized as an allocated reserve within the allowance for loan losses.

Please refer to Note 9 for tabular information related to impaired loans.

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ALLOWANCE FOR LOAN LOSSES

6 Months Ended

Jun. 30, 2016

ALLOWANCE FOR LOAN LOSSES [Abstract]

ALLOWANCE FOR LOAN LOSSES

9. ALLOWANCE FOR LOAN LOSSES

The allowance for loan losses may consist of specific and general components.  The Bank’s periodic evaluation of its allowance for loan losses is comprised of four primary components: (1) impaired loans; (2) non-impaired substandard loans; (3) non-impaired special mention loans; and (4) pass graded loans.  Within these components, the Company has identified the following portfolio segments for purposes of assessing its allowance for loan losses: (1) real estate loans; and (2) consumer loans.  Within these segments, the Bank analyzes the allowance for loan losses based upon the underlying collateral type (classes). Due to their small homogeneous balances, consumer loans were not individually evaluated for impairment as of either June 30, 2016 or December 31, 2015.

Impaired Loan Component

All multifamily residential, mixed use, commercial real estate and construction loans that are deemed to meet the definition of impaired are individually evaluated for impairment.  In addition, all condominium or cooperative apartment and one- to four-family residential real estate loans in excess of the FNMA Limits are individually evaluated for impairment.  Impairment is typically measured using the difference between the outstanding loan principal balance and either: (1) the likely realizable value of a note sale; (2) the fair value of the underlying collateral, net of likely disposal costs, if repayment is expected to come from liquidation of the collateral; or (3) the present value of estimated future cash flows (using the loan's pre-modification rate in the case of some performing TDRs).  For impaired loans on non-accrual status, either of the initial two measurements is utilized.

All TDRs are considered impaired loans and are evaluated individually for measurable impairment, if any.  If a TDR is substantially performing in accordance with its restructured terms, management will look to either the present value of the expected cash flows from the debt service or the potential net liquidation proceeds of the underlying collateral in measuring impairment (whichever is deemed most appropriate under the circumstances). If a TDR has re-defaulted, the likely realizable net proceeds from either a note sale or the liquidation of the collateral are generally considered when measuring impairment.  While measured impairment is generally charged off immediately, impairment attributed to a reduction in the present value of expected cash flows of a performing TDR is generally reflected as an allocated reserve within the allowance for loan losses. At June 30, 2016 and December 31, 2015, there were no allocated reserves related to TDRs within the allowance for loan losses.

Smaller balance homogeneous real estate loans, such as condominium or cooperative apartment and one-to four-family residential real estate loans with balances equal to or less than the FNMA Limits, are collectively evaluated for impairment, and accordingly, are not separately identified for impairment disclosures.

Non-Impaired Loan Component

As of June 30, 2016, the Bank refined the calculation of the allowance for loan losses associated with non-impaired loans using third party software purchased by the Bank. The software model is substantially similar to the previous model used by the Bank whereby the primary drivers of the calculation are historical charge-offs by loan type and certain qualitative elements. Management has evaluated the impact of the change and concluded that it is not material to the overall allowance for non-impaired loans.

Substandard Non-Impaired Loan Component

At June 30, 2016, the reserve allocated within the allowance for loan losses associated with non-impaired loans internally classified as Substandard reflected expected loss percentages on the Bank’s pool of such loans that were derived based upon an analysis of historical losses over the previous forty-eight months, which is the same historical loss look-back period used for all Pass-graded loans.

At December 31, 2015, the reserve allocated within the allowance for loan losses associated with non-impaired loans internally classified as Substandard reflected expected loss percentages on the Bank's pool of such loans that were derived based upon an analysis of historical losses over the previous twelve month period.  The loss percentage resulting from this analysis was then applied to the aggregate pool of non-impaired Substandard loans at December 31, 2015.

Based upon the methodologies used for the non-impaired Substandard loan component at both June 30, 2016 and December 31, 2015, increases or decreases in the amount of either non-impaired Substandard loans or charge-offs associated with such loans, or a change in the measurement timeframe utilized to derive the expected loss percentage, would impact the level of reserves determined on such loans.  As a result, the allowance for loan losses associated with non-impaired Substandard loans is subject to volatility.

The portion of the allowance for loan losses attributable to non-impaired Substandard loans was $99 at June 30, 2016 and $348 at December 31, 2015.  The decline in the allowance attributable to non-impaired Substandard loans during the six month period ended June 30, 2016 was due to a decrease of $1,943 in the balance of such loans from December 31, 2015 to June 30, 2016 combined with a lower loss expectation derived as of June 30, 2016 compared to December 31, 2015.

All non-impaired Substandard loans were deemed sufficiently well secured and performing to have remained on accrual status both prior and subsequent to their downgrade to the Substandard internal loan grade at both June 30, 2016 and December 31, 2015.

Special Mention Non-Impaired Loan Component

At June 30, 2016, the reserve allocated within the allowance for loan losses associated with non-impaired loans internally classified as Special Mention reflected expected loss percentages on the Bank’s pool of such loans that were derived based upon an analysis of historical losses over the previous forty-eight months, which is the same historical loss look-back period used for Pass-graded loans.

At December 31, 2015, the reserve allocated within the allowance for loan losses associated with non-impaired loans internally classified as Special Mention reflected an expected loss percentage on the Bank's pool of such loans that was derived based upon an analysis of historical losses over the previous twelve month period.  The loss percentage resulting from this analysis was then applied to the aggregate pool of non-impaired Special Mention loans at December 31, 2015.

Based upon the methodologies used for the non-impaired Special Mention loan component at both June 30, 2016 and December 31, 2015, increases or decreases in the amount of either non-impaired Special Mention loans or charge-offs associated with such loans, or a change in the measurement timeframe utilized to derive the expected loss percentage, would impact the level of reserves determined on such loans.  As a result, the allowance for loan losses associated with non-impaired Special Mention loans is subject to volatility.

The portion of the allowance for loan losses attributable to non-impaired Special Mention loans was $71 at June 30, 2016, down from $88 at December 31, 2015, due primary to a reduction of $7,804 in the balance of such loans.

Pass Graded Loan Component

The Bank initially looks to the underlying collateral type when determining the allowance for loan losses associated with pass graded real estate loans.  The following underlying collateral types are analyzed separately: 1) one- to four family residential and condominium or cooperative apartment; 2) multifamily residential and residential mixed use; 3) commercial mixed use real estate, 4) commercial real estate; and 5) construction and land acquisition.  Within the analysis of each underlying collateral type, the following elements are additionally considered and provided weighting in determining the allowance for loan losses for pass graded real estate loans:

(i) Charge-off experience (including peer charge-off experience)

(ii) Economic conditions

(iii) Underwriting standards or experience

(iv) Loan concentrations

(v) Regulatory climate

(vi) Nature and volume of the portfolio

(vii) Changes in the quality and scope of the loan review function

The following is a brief synopsis of the manner in which each element is considered:

(i)  Charge-off experience - Loans within the pass graded loan portfolio are segmented by significant common characteristics, against which historical loss rates are applied.  The Bank also reviews and considers the charge-off experience of peer banks in its lending marketplace in order to determine whether potential losses that could take a longer period to flow through its allowance for loan losses possibly exist.

(ii) Economic conditions - At both June 30, 2016 and December 31, 2015, the Bank assigned a loss allocation to its entire pass graded real estate loan portfolio based, in part, upon a review of economic conditions affecting the local real estate market. Specifically, the Bank considered both the level of, and recent trends in: 1) the local and national unemployment rate, 2) residential and commercial vacancy rates, 3) real estate sales and pricing, and 4) delinquencies in the Bank’s loan portfolio.

(iii) Underwriting standards or experience - Underwriting standards are reviewed to ensure that changes in the Bank's lending policies and practices are adequately evaluated for risk and reflected in its analysis of potential credit losses.  Loss expectations associated with changes in the Bank’s lending policies and practices, if any, are then incorporated into the methodology.

(iv) Loan concentrations - The Bank regularly reviews its loan concentrations (borrower, collateral type and location) in order to ensure that heightened risk has not evolved that has not been captured through other factors.  The risk component of loan concentrations is regularly evaluated for reserve adequacy.

(v) Regulatory climate – Consideration is given to public statements made by the banking regulatory agencies that have a potential impact on the Bank’s loan portfolio and allowance for loan losses.

(vi) Nature and volume of the portfolio – The Bank considers any significant changes in the overall nature and volume of its loan portfolio.

(vii) Changes in the quality and scope of the loan review function – The Bank considers the potential impact upon its allowance for loan losses of any adverse change in the quality and scope of the loan review function.

Consumer Loans

Due to their small individual balances, the Bank does not evaluate individual consumer loans for impairment. Loss percentages are applied to aggregate consumer loans based upon both their delinquency status and loan type. These loss percentages are derived from a combination of the Company’s historical loss experience and/or nationally published loss data on such loans. Consumer loans in excess of 120 days delinquent are typically fully charged off against the allowance for loan losses.

The following table presents data regarding the allowance for loan losses and loans evaluated for impairment by class of loan within the real estate loan segment as well as for the aggregate consumer loan segment:

At or for the Three Months Ended June 30, 2016
	Real Estate Loans															Consumer Loans
	One- to Four Family Residential, Including Condominium and Cooperative Apartment			Multifamily Residential and Residential Mixed Use			Commercial Mixed Use Real Estate			Commercial Real Estate			Total Real Estate
Beginning balance	$	99		$	14,462		$	1,552		$	2,381		$	18,494		$	19
Provision (credit) for loan losses		96			407			133			(194	)		442			-
Charge-offs		(4	)		(43	)		(1	)		-			(48	)		-
Recoveries		1			-			-			-			1			1
Ending balance	$	192		$	14,826		$	1,684		$	2,187		$	18,889		$	20
Ending balance – loans individually evaluated for impairment	$	414		$	3,930		$	4,357		$	3,396		$	12,097		$	-
Ending balance – loans collectively evaluated for impairment		75,038			4,215,480			388,755			515,411			5,194,684			2,336
Allowance balance associated with loans individually evaluated for impairment		-			-			-			-			-			-
Allowance balance associated with loans collectively evaluated for impairment		192			14,826			1,684			2,187			18,889			20

At December 31, 2015
	Real Estate Loans										Consumer Loans
	One- to Four Family Residential, Including Condominium and Cooperative Apartment		Multifamily Residential and Residential Mixed Use		Commercial Mixed Use Real Estate		Commercial Real Estate		Total Real Estate
Ending balance – loans individually evaluated for impairment	$	598	$	983	$	4,345	$	3,635	$	9,561	$	-
Ending balance – loans collectively evaluated for impairment		71,497		3,758,924		372,930		482,274		4,685,625		1,590
Allowance balance associated with loans individually evaluated for impairment		-		-		-		-		-		-
Allowance balance associated with loans collectively evaluated for impairment		263		14,118		1,652		2,461		18,494		20

At or for the Three Months Ended June 30, 2015
	Real Estate Loans														Consumer Loans
	One- to Four Family Residential, Including Condominium and Cooperative Apartment			Multifamily Residential and Residential Mixed Use			Commercial Mixed Use Real Estate		Commercial Real Estate			Total Real Estate
Beginning balance	$	111		$	14,173		$	1,566	$	2,365		$	18,215		$	22
Provision (credit) for loan losses		19			238			111		(1,504	)		(1,136	)		1
Charge-offs		(5	)		(40	)		-		(1	)		(46	)		(1	)
Recoveries		1			3			5		1,489			1,498			-
Ending balance	$	126		$	14,374		$	1,682	$	2,349		$	18,531		$	22

At or for the Six Months Ended June 30, 2016
	Real Estate Loans															Consumer Loans
	One- to Four Family Residential, Including Condominium and Cooperative Apartment			Multifamily Residential and Residential Mixed Use			Commercial Mixed Use Real Estate			Commercial Real Estate			Total Real Estate
Beginning balance	$	263		$	14,118		$	1,652		$	2,461		$	18,494		$	20
Provision (credit) for loan losses		(46	)		731			34			(297	)		422			(1	)
Charge-offs		(27	)		(60	)		(2	)		-			(89	)		-
Recoveries		2			37			-			23			62			1
Ending balance	$	192		$	14,826		$	1,684		$	2,187		$	18,889		$	20

At or for the Six Months Ended June 30, 2015
	Real Estate Loans															Consumer Loans
	One- to Four Family Residential, Including Condominium and Cooperative Apartment			Multifamily Residential and Residential Mixed Use			Commercial Mixed Use Real Estate			Commercial Real Estate			Total Real Estate
Beginning balance	$	150		$	13,852		$	1,644		$	2,823		$	18,469		$	24
Provision (credit) for loan losses		80			560			51			(1,998	)		(1,307	)		-
Charge-offs		(107	)		(41	)		(37	)		(1	)		(186	)		(2	)
Recoveries		3			3			24			1,525			1,555			-
Ending balance	$	126		$	14,374		$	1,682		$	2,349		$	18,531		$	22

The following tables summarize impaired real estate loans as of or for the periods indicated (by collateral type within the real estate loan segment):

	At June 30, 2016						At December 31, 2015
	Unpaid Principal Balance at Period End		Recorded Investment at Period End(1)		Reserve Balance Allocated within the Allowance for Loan Losses at Period End		Unpaid Principal Balance at Period End		Recorded Investment at Period End(1)		Reserve Balance Allocated within the Allowance for Loan Losses at Period End
One- to Four Family Residential, Including Condominium and Cooperative Apartment
With no allocated reserve	$	414	$	414	$	-	$	635	$	598	$	-
With an allocated reserve		-		-		-		-		-		-
Multifamily Residential and Residential Mixed Use
With no allocated reserve		3,930		3,930		-		983		983		-
With an allocated reserve		-		-		-		-		-		-
Commercial Mixed Use Real Estate
With no allocated reserve		4,357		4,357		-		4,345		4,345		-
With an allocated reserve		-		-		-		-		-		-
Commercial Real Estate
With no allocated reserve		3,396		3,396		-		3,642		3,635		-
With an allocated reserve		-		-		-		-		-		-
Total
With no allocated reserve	$	12,097	$	12,097	$	-	$	9,605	$	9,561	$	-
With an allocated reserve	$	-	$	-	$	-	$	-	$	-	$	-

(1) The recorded investment excludes accrued interest receivable and loan origination fees, net, due to immateriality.

	Three Months Ended June 30,								Six Months Ended June 30,
	2016				2015				2016				2015
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
One- to Four Family Residential, Including Condominium and Cooperative Apartment
With no allocated reserve	$	399	$	7	$	602	$	11	$	465	$	41	$	603	$	23
With an allocated reserve		-		-		-		-		-		-		-		-
Multifamily Residential and Residential Mixed Use
With no allocated reserve		2,451		25		985		31		1,962		38		1,081		46
With an allocated reserve		-		-		-		-		-		-		-		-
Commercial Mixed Use Real Estate
With no allocated reserve		4,367		44		4,393		44		4,360		88		4,395		88
With an allocated reserve		-		-		-		-		-		-		-		-
Commercial Real Estate
With no allocated reserve		3,404		34		5,929		35		3,481		68		6,688		71
With an allocated reserve		-		-		-		-		-		-		1,833		97
Total
With no allocated reserve	$	10,621	$	110	$	11,909	$	121	$	10,268	$	235	$	12,767	$	228
With an allocated reserve	$	-	$	-	$	-	$	-	$	-	$	-	$	1,833	$	97

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INVESTMENT AND MORTGAGE-BACKED SECURITIES

6 Months Ended

Jun. 30, 2016

INVESTMENT AND MORTGAGE-BACKED SECURITIES [Abstract]

INVESTMENT AND MORTGAGE-BACKED SECURITIES

10. INVESTMENT AND MORTGAGE-BACKED SECURITIES

The following is a summary of major categories of securities owned by the Company (excluding trading securities) at June 30, 2016:

	Purchase Amortized/ Historical Cost		Recorded Amortized/ Historical Cost (1)		Unrealized Gains		Unrealized Losses			Fair Value
Investment securities held-to-maturity:
Pooled bank trust preferred securities ("TRUPS")	$	15,326	$	5,319	$	1,955	$	(469	)	$	6,805
Available-for-sale securities:
Investment securities
Registered Mutual Funds		4,011		4,011		20		(194	)		3,837
MBS
Pass-through MBS issued by GSEs		392		392		14		-			406

(1)  Amount represents the purchase amortized / historical cost less any OTTI charges (credit or non-credit related) previously recognized.  For the TRUPS, amount is also net of the $781 unamortized portion of the unrealized loss that was recognized in accumulated other comprehensive loss on September 1, 2008 (the day on which these securities were transferred from available-for-sale to held-to-maturity).

The following is a summary of major categories of securities owned by the Company (excluding trading securities) at December 31, 2015:

	Purchase Amortized/ Historical Cost		Recorded Amortized/ Historical Cost (1)		Unrealized Gains		Unrealized Losses			Fair Value
Investment securities held-to-maturity:
TRUPS	$	15,344	$	5,242	$	2,154	$	(345	)	$	7,051
Available-for-sale securities:
Investment securities
Registered Mutual Funds		3,990		3,990		25		(259	)		3,756
MBS
Pass-through MBS issued by GSEs		418		418		13		-			431

(1)  Amount represents the purchase amortized/historical cost less any OTTI charges (credit or non-credit related) previously recognized.  For the TRUPS, amount is also net of the $807 unamortized portion of the unrealized loss that was recognized in accumulated other comprehensive loss on September 1, 2008 (the day on which these securities were transferred from available-for-sale to held-to-maturity).

The held-to-maturity TRUPS had a weighted average term to maturity of 18.5 years at June 30, 2016.  At June 30, 2016, the pass-through MBS issued by GSEs possessed a weighted average contractual maturity of 11.5 years. All of the pass-throughMBS issued by GSEspossess an annual interest rate adjustment.

There were no sales of investment securities during the three-month and six-month periods ended June 30, 2016. The entire gain/loss on securities shown in the unaudited condensed consolidated statements of income for this period resulted from market valuation changes or sales of trading securities.  Proceeds from the sale of trading securities were $3.6 million during the three and six month periods ended June 30, 2016.  Gross gains of $3 and gross losses of $45 were recognized on these sales.   Proceeds from the sales of investment securities available-for-sale totaled $2 million during the three months ended June 30, 2015. Gross gains of $4 and gross losses of $8 were recognized on these sales. Proceeds from the sales of investment securities available-for-sale totaled $2,070 during the six months ended June 30, 2015. Gross gains of $4 and gross losses of $8 were recognized on these sales.

Tax provisions related to the gains on sales of investment securities and MBS available-for-sale recognized during the three-month and six-month periods ended June 30, 2015 are disclosed in the condensed consolidated statements of comprehensive income.

As of each reporting period through June 30, 2016, the Company has applied the protocol established by ASC 320-10-65 in order to determine whether OTTI existed for its TRUPS and/or to measure, for TRUPS that have been determined to be other than temporarily impaired, the credit related and non-credit related components of OTTI.  As of June 30, 2016, five TRUPS were determined to meet the criteria for OTTI based upon this analysis.  At June 30, 2016, these five securities had credit ratings ranging from "C" to "Caa3."

The following table provides a reconciliation of the pre-tax OTTI charges recognized on the Company's TRUPS:

	At or for the Three Months Ended June 30, 2016								At or for the Three Months Ended June 30, 2015
	Credit Related OTTI Recognized in Earnings			Non-Credit OTTI Recognized in Accumulated Other Comprehensive Loss			Total OTTI		Credit Related OTTI Recognized in Earnings			Non-Credit OTTI Recognized in Accumulated Other Comprehensive Loss		Total OTTI
Cumulative pre-tax balance at the beginning of the period	$	8,691		$	570		$	9,261	$	8,795		$	561	$	9,356
Accretion (Amortization) of previously recognized OTTI		(26	)		(8	)		(34)		(26	)		35		9
Cumulative pre-tax balance at end of the period	$	8,665		$	562		$	9,227	$	8,769		$	596	$	9,365

	At or for the Six Months Ended June 30, 2016								At or for the Six Months Ended June 30, 2015
	Credit Related OTTI Recognized in Earnings			Non-Credit OTTI Recognized in Accumulated Other Comprehensive Loss			Total OTTI		Credit Related OTTI Recognized in Earnings			Non-Credit OTTI Recognized in Accumulated Other Comprehensive Loss		Total OTTI
Cumulative pre-tax balance at the beginning of the period	$	8,717		$	578		$	9,295	$	8,945		$	569	$	9,514
Accretion (Amortization) of previously recognized OTTI		(52	)		(16	)		(68)		(176	)		27		(149	)
Cumulative pre-tax balance at end of the period	$	8,665		$	562		$	9,227	$	8,769		$	596	$	9,365

The following table summarizes the gross unrealized losses and fair value of investment securities as of June 30, 2016, aggregated by investment category and the length of time the securities were in a continuous unrealized loss position:

	Less than 12 Months Consecutive Unrealized Losses				12 Months or More Consecutive Unrealized Losses				Total
	Fair Value		Gross Unrecognized/ Unrealized Losses		Fair Value		Gross Unrecognized/ Unrealized Losses		Fair Value		Gross Unrecognized/ Unrealized Losses
Held-to-Maturity Securities:
TRUPS	$	-	$	-	$	2,255	$	469	$	2,255	$	469
Available-for-Sale Securities:
Registered Mutual Funds		371		8		3,121		186		3,492		194

TRUPS That Have Maintained an Unrealized Holding Loss for 12 or More Consecutive Months

At June 30, 2016, impairment of two TRUPS was deemed temporary, as management believed that the full recorded balance of the investments would be realized.  In making this determination, management considered the following:

· Based upon an internal review of the collateral backing the TRUPS portfolio, which accounted for current and prospective deferrals, the securities could reasonably be expected to continue making all contractual payments

· The Company does not intend to sell these securities prior to full recovery of their impairment

· There were no cash or working capital requirements nor contractual or regulatory obligations that would compel the Company to sell these securities prior to their forecasted recovery or maturity

· The securities have a pool of underlying issuers comprised primarily of banks

· None of the securities have exposure to real estate investment trust issued debt (which has experienced high default rates)

· The securities feature either a mandatory auction or a de-leveraging mechanism that could result in principal repayments to the Bank prior to the stated maturity of the security

· The securities are adequately collateralized

The following table summarizes the gross unrealized losses and fair value of investment securities as of December 31, 2015, aggregated by investment category and the length of time the securities were in a continuous unrealized loss position:

	Less than 12 Months Consecutive Unrealized Losses				12 Months or More Consecutive Unrealized Losses				Total
	Fair Value		Gross Unrecognized/ Unrealized Losses		Fair Value		Gross Unrecognized/ Unrealized Losses		Fair Value		Gross Unrecognized/ Unrealized Losses
Held-to-Maturity Securities:
TRUPS	$	-	$	-	$	2,359	$	345	$	2,359	$	345
Available-for-Sale Securities:
Registered Mutual Funds		3,026		259		-		-		3,026		259

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DERIVATIVES AND HEDGING ACTIVITIES

6 Months Ended

Jun. 30, 2016

DERIVATIVES AND HEDGING ACTIVITIES [Abstract]

DERIVATIVES AND HEDGING ACTIVITIES

11. DERIVATIVES AND HEDGING ACTIVITIES

Cash Flow Hedges of Interest Rate Risk

The Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy.  Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

The effective portion of changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in Accumulated Other Comprehensive Loss and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings. During the three and six months ended June 30, 2016, such derivatives were used to hedge the variability in cash flows associated with wholesale borrowings.  The ineffective portion of the change in fair value of the derivatives is recognized directly in earnings. During the three and six months ended June 30, 2016, the Company’s did not record any hedge ineffectiveness. The Company did not have any derivatives outstanding prior to the quarter ended June 30, 2016.

Amounts reported in accumulated other comprehensive loss related to derivatives will be reclassified to interest expense as interest payments are paid on the Company’s liabilities.

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Statement of Financial Condition:

	At June 30, 2016
	Count		Notional Amount		Fair Value Assets		Fair Value Liabilities
Derivatives designated as hedging instruments
Interest Rate Products		4	$	90,000	$	-	$	957
Total derivatives designated as hedging instruments		4	$	90,000	$	-	$	957

Weighted average pay rates	1.24%
Weighted average receive rates	0.64%
Weighted average maturity	5.82 years

The table below presents the effect of the Company’s derivative financial instruments as the amount of gain or (loss) on the Consolidated Statements of Income as of June 30, 2016:

	At or for the Three and Six Months Ended June 30, 2016
	Amount of Gain or (Loss) Recognized in Other Comprehensive Income (Effective Portion)			Amount of Gain or (Loss) Reclassified from Other Comprehensive Income into Interest Expense (Effective Portion)			Amount of Gain or (Loss) Recognized in Other Non-Interest Expense (Ineffective Portion)
Interest Rate Products	$	(998	)	$	(41	)	$	-

The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of June 30, 2016. The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the Consolidated Statements of Financial Condition.

Offsetting of Derivative Liabilities as of June 30, 2016:

	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statements of Financial Condition		Net Amounts of Assets presented in the Statements of Financial Condition		Gross Amounts Not Offset in the Statements of Financial Condition				Net Amount
							Financial Instruments		Cash Collateral Received
Counterparty A	$	957	$	-	$	957	$	-	$	-	$	957

The Company’s  agreements with each of its derivative counterparties state that if the Company defaults on any of its indebtedness, it could also be declared in default on its derivative obligations and could be required to terminate its derivative positions with the counterparty.

The Company’s agreements with certain of its derivative counterparties state that if the Bank fails to maintain its status as a well-capitalized institution, the Bank could be required to terminate its derivative positions with the counterparty.

As of June 30, 2016, the termination value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $997. If the Company had breached any of the above provisions at June 30, 2016, it could have been required to settle its obligations under the agreements at the termination value and would have been required to pay any additional amounts due in excess of amounts previously posted as collateral with the respective counterparty. There were no provisions breached for the period ended June 30, 2016.

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FAIR VALUE OF FINANCIAL INSTRUMENTS

6 Months Ended

Jun. 30, 2016

FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract]

FAIR VALUE OF FINANCIAL INSTRUMENTS

12. FAIR VALUE OF FINANCIAL INSTRUMENTS

The fair value hierarchy established under ASC 820-10 is summarized as follows:

Level 1 Inputs – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the reporting entity has the ability to access at the measurement date.

Level 2 Inputs – Significant other observable inputs such as any of the following: (1) quoted prices for similar assets or liabilities in active markets, (2) quoted prices for identical or similar assets or liabilities in markets that are not active, (3) inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates and yield curves observable at commonly quoted intervals, volatilities, prepayment speeds, loss severities, credit risks, and default rates), or (4) inputs that are derived principally from or corroborated by observable market data by correlation or other means (market-corroborated inputs).

Level 3 Inputs – Significant unobservable inputs for the asset or liability.  Significant unobservable inputs reflect the reporting entity's own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk).  Significant unobservable inputs shall be used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date.

The following tables present the assets that are reported on the consolidated statements of financial condition at fair value as of the date indicated segmented by level within the fair value hierarchy.  Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

Assets and Liabilities Measured at Fair Value on a Recurring Basis at June 30, 2016
			Fair Value Measurements Using
Description	Total		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
Financial Assets
Trading securities (Registered Mutual Funds):
Domestic Equity Mutual Funds	$	787	$	787	$	-	$	-
International Equity Mutual Funds		207		207		-		-
Fixed Income Mutual Funds		5,820		5,820		-		-
Investment securities available-for-sale:
Registered Mutual Funds:
Domestic Equity Mutual Funds		1,244		1,244		-		-
International Equity Mutual Funds		374		374		-		-
Fixed Income Mutual Funds		2,219		2,219		-		-
Pass-through MBS issued by GSEs		406		-		406		-
Financial Liabilities
Derivative – interest rate product	$	957		-	$	957		-

Assets Measured at Fair Value on a Recurring Basis at December 31, 2015
			Fair Value Measurements Using
Description	Total		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
Trading securities (Registered Mutual Funds):
Domestic Equity Mutual Funds	$	1,053	$	1,053	$	-	$	-
International Equity Mutual Funds		281		281		-		-
Fixed Income Mutual Funds		8,867		8,867		-		-
Investment securities available-for-sale:
Registered Mutual Funds:
Domestic Equity Mutual Funds		1,253		1,253		-		-
International Equity Mutual Funds		383		383		-		-
Fixed Income Mutual Funds		2,120		2,120		-		-
Pass-through MBS issued by GSEs		431		-		431		-

The Company’s available-for-sale investment securities and MBS are reported at fair value, which were determined utilizing prices obtained from independent parties. The valuations obtained are based upon market data, and often utilize evaluated pricing models that vary by asset and incorporate available trade, bid and other market information. For securities that do not trade on a daily basis, pricing applications apply available information such as benchmarking and matrix pricing. The market inputs normally sought in the evaluation of securities include benchmark yields, reported trades, broker/dealer quotes (obtained only from market makers or broker/dealers recognized as market participants), issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data. For certain securities, additional inputs may be used or some market inputs may not be applicable.  Prioritization of inputs may vary on any given day based on market conditions.

The pass-through MBS issued by GSEs all possessed the highest possible credit rating published by at least one established credit rating agency as of June 30, 2016 and December 31, 2015. Obtaining market values as of June 30, 2016 and December 31, 2015 for these securities utilizing significant observable inputs was not difficult due to their considerable demand.

Derivatives represent interest rate swaps and estimated fair values are based on valuation models using observable market data as of the measurement date.

There were no assets measured at fair value on a non-recurring basis as of June 30, 2016 or December 31, 2015.

Impaired Loans - Loans with certain characteristics are evaluated individually for impairment. A loan is considered impaired under ASC 310-10-35 when, based upon existing information and events, it is probable that the Bank will be unable to collect all amounts due, including principal and interest, according to the contractual terms of the loan agreement. The Bank's impaired loans at June 30, 2016 and December 31, 2015 were collateralized by real estate and were thus carried at the lower of the outstanding principal balance or the estimated fair value of the collateral.  Fair value is estimated through either a negotiated note sale price (Level 3 input), or, more commonly, a recent real estate appraisal (Level 3 input).  The appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value.

An appraisal is generally ordered for all impaired multifamily residential, mixed use and commercial real estate loans for which the most recent appraisal is more than one year old.  The Bank never adjusts independent appraisal data upward.  Occasionally, management will adjust independent appraisal data downward based upon its own lending expertise and/or experience with the subject property, utilizing such factors as potential note sale values, or a more refined estimate of costs to repair and time to lease the property.  Adjustments for potential disposal costs are also considered when determining the final appraised value.

As of June 30, 2016 and December 31, 2015, there were no impaired loans measured at fair value.

The carrying amounts and estimated fair values of financial instruments other than those measured at fair value on either a recurring or non-recurring basis at June 30, 2016 and December 31, 2015 were as follows:

			Fair Value at June 30, 2016 Using
At June 30, 2016	Carrying Amount		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total
Assets:
Cash and due from banks	$	89,927	$	89,927	$	-	$	-	$	89,927
Investment securities held to maturity (TRUPS)		5,319		-				6,805		6,805
Loans, net		5,190,208		-		-		5,213,167		5,213,167
Accrued interest receivable		14,896		-		2		14,894		14,896
FHLBNY capital stock		52,814		N/A		N/A		N/A		N/A
Liabilities:
Savings, money market and checking accounts		2,745,744		2,745,744		-		-		2,745,744
Certificates of Deposit ("CDs")		1,034,522		-		1,043,254		-		1,043,354
Escrow and other deposits		92,290		92,964		-		-		92,964
FHLBNY Advances		1,017,125		-		1,026,682		-		1,026,682
Trust Preferred securities payable		70,680		-		69,973		-		69,973
Accrued interest payable		2,156		-		2,156		-		2,156

			Fair Value at December 31, 2015 Using
At December 31, 2015	Carrying Amount		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total
Assets:
Cash and due from banks	$	64,154	$	64,154	$	-	$	-	$	64,154
Investment securities held to maturity (TRUPS)		5,242		-		-		7,051		7,051
Loans, net		4,678,262		-		-		4,722,803		4,722,803
Accrued interest receivable		13,486		-		19		13,467		12,664
FHLBNY capital stock		58,713		N/A		N/A		N/A		N/A
Liabilities:
Savings, money market and checking accounts		2,325,463		2,325,463		-		-		2,325,463
CDs		858,847		-		865,581		-		865,581
Escrow and other deposits		77,130		77,130		-		-		77,130
FHLBNY Advances		1,166,725		-		1,170,274		-		1,170,274
Trust Preferred securities payable		70,680		-		69,973		-		69,973
Accrued interest payable		2,259		-		2,259		-		2,259

Cash and Due From Banks – The fair value is assumed to be equal to their carrying value as these amounts are due upon demand (deemed a Level 1 valuation).

TRUPS Held to Maturity – At both June 30, 2016 and December 31, 2015 the Company owned seven TRUPS classified as held-to-maturity. As a result of improved marketplace stability and enhanced trading activity, broker quotations became the sole valuation source utilized to estimate the fair value of TRUPS as of June 30, 2016 and December 31, 2015. Despite improvement in the overall marketplace conditions, unobservable data was still deemed to have been utilized in the broker quotation pricing, warranting a determination of Level 3 valuation for these securities at June 30, 2016 and December 31, 2015.

Loans, Net (Excluding Impaired Loans Carried at Fair Value) – For adjustable rate loans repricing monthly or quarterly, and with no significant change in credit risk, fair values are based on carrying values.  The fair value of all remaining loans receivable is determined by discounting anticipated future cash flows of the loans, net of anticipated prepayments, using a discount rate reflecting current market rates for loans with similar terms to borrowers of similar credit quality.  The valuation method used for loans does not necessarily represent an exit price valuation methodology as defined under ASC 820.  However, since the valuation methodology is deemed to be comparable to a Level 3 input, the fair value of loans receivable other than impaired loans measured at fair value, is shown under the Level 3 valuation column.

Accrued Interest Receivable – The estimated fair value of accrued interest receivable approximates its carrying amount, and is deemed to be valued at an input level comparable to its underlying financial asset.

FHLBNY Capital Stock – It is not practicable to determine the fair value of FHLBNY capital stock due to restrictions placed on transferability.

Deposits – The fair value of savings, money market, and checking accounts is, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amount), which has been deemed a Level 1 valuation.  The fair value of CDs is based upon the present value of contractual cash flows using current interest rates for instruments of the same remaining maturity (deemed a Level 2 valuation).

Escrow and Other Deposits – The fair value of escrow and other deposits is, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amount), which has been deemed a Level 1 valuation.

FHLBNY Advances – Thefair value of FHLBNY advances is measured by the discounted anticipated cash flows through contractual maturity or next interest repricing date, or an earlier call date if, as of the valuation date, the borrowing is expected to be called (deemed a Level 2 valuation).  The carrying amount of accrued interest payable on FHLBNY advances is its fair value and is deemed a Level 2 valuation.

Trust Preferred Securities Payable – The fair value of trust preferred securities payable is estimated using discounted cash flow analyses based on then current borrowing rates for similar types of borrowing arrangements (deemed a Level 2 valuation), and is provided to the Company quarterly independently by a market maker in the underlying security.

Accrued Interest Payable – The estimated fair value of accrued interest payable approximates its carrying amount, and is deemed to be valued at an input level comparable to its underlying financial liability.

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RETIREMENT AND POSTRETIREMENT PLANS

6 Months Ended

Jun. 30, 2016

RETIREMENT AND POSTRETIREMENT PLANS [Abstract]

RETIREMENT AND POSTRETIREMENT PLANS

13. RETIREMENT AND POSTRETIREMENT PLANS

The Holding Company or the Bank maintains the Retirement Plan of The Dime Savings Bank of Williamsburgh (the "Employee Retirement Plan"), the Retirement Plan for Board Members of Dime Community Bancshares, Inc. (the "Outside Director Retirement Plan"), the BMP, and the Postretirement Welfare Plan of The Dime Savings Bank of Williamsburgh (the "Postretirement Plan").  Net expenses associated with these plans were comprised of the following components:

	Three Months Ended June 30, 2016						Three Months Ended June 30, 2015
	BMP, Employee and Outside Director Retirement Plans			Postretirement Plan			BMP, Employee and Outside Director Retirement Plans			Postretirement Plan
Service cost	$	-		$	-		$	-		$	-
Interest cost		343			16			343			29
Expected return on assets		(383	)		-			(414	)		-
Unrecognized past service liability		-			(2	)		-			-
Amortization of unrealized loss		428			(1	)		480			(13	)
Net periodic cost	$	388		$	13		$	409		$	16

	Six Months Ended June 30, 2016						Six Months Ended June 30, 2015
	BMP, Employee and Outside Director Retirement Plans			Postretirement Plan			BMP, Employee and Outside Director Retirement Plans			Postretirement Plan
Service cost	$	-		$	-		$	-		$	9
Interest cost		686			32			687			538
Expected return on assets		(766	)		-			(828	)		-
Curtailment gain(1)		-			-			-			(3,394	)
Unrecognized past service liability		-			(4	)		-			-
Amortization of unrealized loss		858			(2	)		959			(25	)
Net periodic cost (gain)	$	778		$	26		$	818		$	(2,872	)

(1) The Postretirement Plan was amended effective March 31, 2015, whereby future retirees will not be eligible to participate in the plan. This plan amendment resulted in a curtailment gain.

The Company disclosed in its consolidated financial statements for the year ended December 31, 2015 that it expected to make contributions to, or benefit payments on behalf of, benefit plans during 2016 as follows: BMP - $686, Outside Director Retirement Plan - $208, and Postretirement Plan - $116.  The Company made contributions of $7 to the Employee Retirement Plan during the three months ended June 30, 2016, and $11 during the six months ended June 30, 2016.  The Company made benefit payments of $41 on behalf of the Outside Director Retirement Plan during the three months ended June 30, 2016, and $82 during the six months ended June 30, 2016, and expects to make the remainder of the estimated net contributions or benefit payments during 2016.  The Company made benefit payments totaling $17 on behalf of the Postretirement Plan during the three months ended June 30, 2016, and $50 during the six months ended June 30, 2016, and expects to make the remainder of the anticipated contributions or benefit payments during 2016.  The Company did not make any defined benefit contributions to, or benefit payments on behalf of, the BMP during the three month or six month periods ended June 30, 2016, however, does expect to make benefit payments on behalf of the BMP during 2016.

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INCOME TAXES

6 Months Ended

Jun. 30, 2016

INCOME TAXES [Abstract]

INCOME TAXES

14. INCOME TAXES

During the three months ended June 30, 2016 and 2015, the Company's consolidated effective tax rates were 42.2% and 40.9%, respectively. During the six months ended June 30, 2016 and 2015, the Company's consolidated effective tax rates were 42.2% and 40.6%, respectively.  The increase in the consolidated tax rate from 2015 to 2016 was the result of a $68.2 million gain on sale of real estate transaction, which will impact the consolidated tax rate in each quarterly period in 2016.  There were no other significant unusual income tax items during the three-month or six-month periods ended either June 30, 2016 or 2015.

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PREMISES HELD FOR SALE

6 Months Ended

Jun. 30, 2016

PREMISES HELD FOR SALE [Abstract]

PREMISES HELD FOR SALE

15. PREMISES HELD FOR SALE

On March 16, 2016, the Bank completed the sale of premises held for sale with an aggregate recorded balance of $8,799 at December 31, 2015.  A gain of $68,183 was recognized on this sale.

During the six months ended June 30, 2016, the Bank re-classified certain real estate utilized as a retail branch and principal office of the Company and the Bank to premises held for sale. The aggregate recorded balance of the premises held for sale was $1,379 at June 30, 2016, the outstanding balance upon transfer. On April 14, 2016, a Purchase and Sale Agreement was executed for the property, for a sale price of $12,300. The sale is expected to close in April 2017.

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SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2016

SUBSEQUENT EVENTS [Abstract]

SUBSEQUENT EVENTS

16. SUBSEQUENT EVENTS

Effective August 1, 2016, the Bank changed its name to Dime Community Bank.  The new name more accurately reflects the Bank's evolving business model and will allow the Bank to emphasize its broader geographic and business reach while not abandoning its mission to be in the communities it serves, including the virtual community online.

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OTHER COMPREHENSIVE INCOME (LOSS) (Tables)

6 Months Ended

Jun. 30, 2016

OTHER COMPREHENSIVE INCOME (LOSS) [Abstract]

Reclassification Out of Accumulated Other Comprehensive Income

The before and after tax amounts allocated to each component of other comprehensive income (loss) are presented in the table below.  Reclassification adjustments related to securities available-for-sale are included in the line entitled net gain (loss) on securities and other assets in the accompanying condensed consolidated statements of income.

	Pre-tax Amount			Tax Expense (Benefit)			After tax Amount
Three Months Ended June 30, 2016
Securities held-to maturity and transferred securities:
Change in non-credit component of OTTI	$	8		$	4		$	4
Change in unrealized loss on securities transferred to held-to-maturity		14			6			8
Total securities held-to-maturity and transferred securities		22			10			12
Securities available-for-sale:
Change in net unrealized gain during the period		47			21			26
Total securities available-for-sale		47			21			26
Defined benefit plans:
Reclassification adjustment for expense included in salaries and employee benefits expense		425			191			234
Total defined benefit plans		425			191			234
Derivatives:
Change in unrealized loss on derivative liability		(957	)		(431	)		(526	)
Total derivatives		(957	)		(431	)		(526	)
Total other comprehensive (loss)	$	(463	)	$	(209	)	$	(254	)
Three Months Ended June 30, 2015
Securities held-to-maturity and transferred securities:
Change in non-credit component of OTTI	$	(35	)	$	(16	)	$	(19	)
Change in unrealized loss on securities transferred to held-to-maturity		22			10			12
Total securities held-to-maturity and transferred securities		(13	)		(6	)		(7	)
Securities available-for-sale:
Reclassification adjustment for net gains included in net gain (loss) on securities and other assets		4			2			2
Change in net unrealized gain during the period		(8	)		(4	)		(4	)
Total securities available-for-sale		(4	)		(2	)		(2	)
Defined benefit plans:
Reclassification adjustment for expense included in salaries and employee benefits expense		467			210			257
Total defined benefit plans		467			210			257
Total other comprehensive income	$	450		$	202		$	248

	Pre-tax Amount			Tax Expense (Benefit)			After tax Amount
Six Months Ended June 30, 2016
Securities held-to maturity and transferred securities:
Change in non-credit component of OTTI	$	16		$	8		$	8
Change in unrealized loss on securities transferred to held-to-maturity		25			11			14
Total securities held-to-maturity and transferred securities		41			19			22
Securities available-for-sale:
Change in net unrealized gain during the period		62			28			34
Total securities available-for-sale		62			28			34
Defined benefit plans:
Reclassification adjustment for expense included in salaries and employee benefits expense		850			382			468
Total defined benefit plans		850			382			468
Derivatives:
Change in unrealized loss on derivative liability		(957	)		(431	)		(526	)
Total derivatives		(957	)		(431	)		(526	)
Total other comprehensive loss	$	(4	)	$	2		$	(2	)
Six Months Ended June 30, 2015
Securities held-to-maturity and transferred securities:
Change in non-credit component of OTTI	$	(27	)	$	(12	)	$	(15	)
Change in unrealized loss on securities transferred to held-to-maturity		46			21			25
Total securities held-to-maturity and transferred securities		19			9			10
Securities available-for-sale:
Reclassification adjustment for net gains included in net gain (loss) on securities and other assets		(1,384	)		(624	)		(760	)
Change in net unrealized gain during the period		35			15			20
Total securities available-for-sale		(1,349	)		(609	)		(740	)
Defined benefit plans:
Reclassification adjustment for expense included in salaries and employee benefits expense		934			420			514
Change in the net actuarial gain or loss		(1,064	)		(478	)		(586	)
Total defined benefit plans		(130	)		(58	)		(72	)
Total other comprehensive income	$	(1,460	)	$	(658	)	$	(802	)

Activity in Accumulated Other Comprehensive Income (Loss), Net of Tax

Activity in accumulated other comprehensive gain (loss), net of tax, was as follows:

	Securities Held-to- Maturity and Transferred Securities			Securities Available- for-Sale			Defined Benefit Plans			Derivative Liability			Total Accumulated Other Comprehensive Gain (Loss)
Balance as of January 1, 2016	$	(760	)	$	(122	)	$	(7,919	)	$	-		$	(8,801	)
Other comprehensive income (loss) before reclassifications		22			34			-			(526	)		(470	)
Amounts reclassified from accumulated other comprehensive loss		-			-			468			-			468
Net other comprehensive income (loss) during the period		22			34			468			(526	)		(2	)
Balance as of June 30, 2016	$	(738	)	$	(88	)	$	(7,451	)	$	(526	)	$	(8,803	)
Balance as of January 1, 2015	$	(826	)	$	736		$	(8,457	)	$	-		$	(8,547	)
Other comprehensive income (loss) before reclassifications		10			20			(586	)		-			(556	)
Amounts reclassified from accumulated other comprehensive loss		-			(760	)		514			-			(246	)
Net other comprehensive income (loss) during the period		10			(740	)		(72	)		-			(802	)
Balance as of June 30, 2015	$	(816	)	$	(4	)	$	(8,529	)	$	-		$	(9,349	)

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EARNINGS PER SHARE ("EPS") (Tables)

6 Months Ended

Jun. 30, 2016

EARNINGS PER SHARE ("EPS") [Abstract]

Reconciliation of Numerators and Denominators of Basic EPS and Diluted EPS

The following is a reconciliation of the numerators and denominators of basic EPS and diluted EPS for the periods presented:

	Three Months Ended June 30,						Six Months Ended June 30,
	2016			2015			2016			2015
Net income per the Consolidated Statements of Income	$	11,208		$	11,529		$	61,245		$	23,307
Less: Dividends paid and earnings allocated to participating securities		(24	)		(33	)		(55	)		(73	)
Income attributable to common stock	$	11,184		$	11,496		$	61,190		$	23,234
Weighted average common shares outstanding, including participating securities		36,946,082			36,412,733			36,874,535			36,344,359
Less: weighted average participating securities		(192,525	)		(245,046	)		(202,885	)		(266,424	)
Weighted average common shares outstanding		36,753,557			36,167,687			36,671,650			36,077,935
Basic EPS	$	0.30		$	0.32		$	1.67		$	0.65
Income attributable to common stock	$	11,184		$	11,496		$	61,190		$	23,234
Weighted average common shares outstanding		36,753,557			36,167,687			36,671,650			36,077,935
Weighted average common equivalent shares outstanding		65,028			91,690			69,420			80,886
Weighted average common and equivalent shares outstanding		36,818,585			36,259,377			36,741,070			36,158,821
Diluted EPS	$	0.30		$	0.32		$	1.67		$	0.64

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ACCOUNTING FOR STOCK BASED COMPENSATION (Tables)

6 Months Ended

Jun. 30, 2016

ACCOUNTING FOR STOCK BASED COMPENSATION [Abstract]

Schedule of Share-based Compensation, Stock Options, Activity

Combined activity related to stock options granted under the Stock Plans during the periods presented was as follows:

	At or for the Three Months Ended June 30,						At or for the Six Months Ended June 30,
	2016			2015			2016			2015
Options outstanding – beginning of period		465,246			905,780			465,246			979,916
Options granted		-			-			-			-
Options exercised		(193,828	)		(259,579	)		(193,828	)		(274,355	)
Options that expired prior to exercise		-			-			-			(59,360	)
Options outstanding – end of period		271,418			646,201			271,418			646,201
Intrinsic value of options exercised	$	732		$	300		$	732		$	384
Compensation expense recognized		-			8			-			31
Remaining unrecognized compensation expense		-			-			-			-
Intrinsic value of outstanding options at period end		553			1,632			553			1,632
Intrinsic value of vested options at period end		553			1,632			553			1,632
Weighted average exercise price of vested options – end of period		15.32			14.57			15.32			14.57

Schedule of Nonvested Restricted Stock Units Activity

The following is a summary of activity related to the restricted stock awards granted under the 2004 Stock Incentive Plan or 2013 Equity and Incentive Plan during the periods indicated:

	At or for the Three Months Ended June 30,						At or for the Six Months Ended June 30,
	2016			2015			2016			2015
Unvested allocated shares – beginning of period		222,142			285,610			223,894			289,660
Shares granted		60,675			68,069			60,675			68,069
Shares vested		(115,135	)		(128,327	)		(116,001	)		(132,377	)
Shares forfeited		(12,863	)		(980	)		(13,749	)		(980	)
Unvested allocated shares – end of period		154,819			224,372			154,819			224,372
Compensation recorded to expense	$	390		$	455		$	828		$	984

Share-based Compensation, Performance Shares Award Unvested Activity

The following table summarizes these awards as of the period indicated:

	At or for the Three Months Ended June 30, 2016			At or for the Six Months Ended June 30, 2016
Maximum aggregate share payout – beginning of period		28,044			28,044
Shares forfeited		(3,312	)		(3,312	)
Maximum aggregate share payout – end of period		24,732			24,732
Minimum aggregate share payout		-			-
Likely aggregate share payout		16,488			16,488
Compensation expense recognized	$	21		$	21

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LOANS RECEIVABLE AND CREDIT QUALITY (Tables)

6 Months Ended

Jun. 30, 2016

LOANS RECEIVABLE AND CREDIT QUALITY [Abstract]

Summary of the Credit Risk Profile of the Real Estate Loans

The following is a summary of the credit risk profile of real estate loans (including deferred costs) by internally assigned grade as of the dates indicated:

Balance at June 30, 2016
Grade	One- to Four- Family Residential, Including Condominium and Cooperative Apartment		Multifamily Residential and Residential Mixed Use		Commercial Mixed Use Real Estate		Commercial Real Estate		Total Real Estate Loans
Pass	$	72,366	$	4,205,375	$	385,432	$	510,971	$	5,174,144
Special Mention		935		5,068		2,146		1,230		9,379
Substandard		2,151		8,967		5,534		6,606		23,258
Doubtful		-		-		-		-		-
Total	$	75,452	$	4,219,410	$	393,112	$	518,807	$	5,206,781

Balance at December 31, 2015
Grade	One- to Four-Family Residential, Including Condominium and Cooperative Apartment		Multifamily Residential and Residential Mixed Use		Commercial Mixed Use Real Estate		Commercial Real Estate		Total Real Estate Loans
Not Graded(1)	$	7,698	$	-	$	-	$	-	$	7,698
Pass		61,256		3,743,298		370,110		473,242		4,647,906
Special Mention		945		9,759		1,622		4,857		17,183
Substandard		2,196		6,850		5,543		7,810		22,399
Doubtful		-		-		-		-		-
Total	$	72,095	$	3,759,907	$	377,275	$	485,909	$	4,695,186

⁽¹⁾ Amount comprised of fully performing one- to four-family residential and condominium and cooperative unit loans with balances equal to or less than the FNMA Limits.

The following is a summary of the credit risk profile of consumer loans by internally assigned grade:

Grade	Balance at June 30, 2016		Balance at December 31, 2015
Performing	$	2,332	$	1,586
Non-accrual		4		4
Total	$	2,336	$	1,590

Past Due Financing Receivables

The following is a breakdown of the past due status of the Company's investment in loans (excluding accrued interest and loans held for sale) as of the dates indicated:

At June 30, 2016
	30 to 59 Days Past Due		60 to 89 Days Past Due		Loans 90 Days or More Past Due and Still Accruing Interest		Non- accrual (1)		Total Past Due		Current		Total Loans
Real Estate:
One- to four-family residential, including condominium and cooperative apartment	$	-	$	154	$	-	$	487	$	641	$	74,811	$	75,452
Multifamily residential and residential mixed use		85		-		4,344		3,784		8,213		4,211,197		4,219,410
Commercial mixed use real estate		116		-		190		54		360		392,752		393,112
Commercial real estate		180		-		-		-		180		518,627		518,807
Total real estate	$	381	$	154	$	4,534	$	4,325	$	9,394	$	5,197,387	$	5,206,781
Consumer	$	-	$	-	$	-	$	4	$	-	$	2,332	$	2,336

⁽¹⁾ Includes all loans on non-accrual status regardless of the number of days such loans were delinquent as of June 30, 2016.

At December 31, 2015
	30 to 59 Days Past Due		60 to 89 Days Past Due		Loans 90 Days or More Past Due and Still Accruing Interest		Non- accrual  (1)		Total Past Due		Current		Total Loans
Real Estate:
One- to four-family residential, including condominium and cooperative apartment	$	127	$	-	$	625	$	1,113	$	1,865	$	70,230	$	72,095
Multifamily residential and residential mixed use		2,235		-		2,514		287		5,036		3,754,871		3,759,907
Commercial mixed use real estate		-		406		406		-		812		376,463		377,275
Commercial real estate		200		-		987		207		1,394		484,515		485,909
Total real estate	$	2,562	$	406	$	4,532	$	1,607	$	9,107	$	4,686,079	$	4,695,186
Consumer	$	1	$	1	$	-	$	4	$	6	$	1,584	$	1,590

⁽¹⁾ Includes all loans on non-accrual status regardless of the number of days such loans were delinquent as of December 31, 2015.

Troubled Debt Restructurings on Financing Receivables

The following table summarizes outstanding TDRs by underlying collateral type as of the dates indicated:

	As of June 30, 2016				As of December 31, 2015
	No. of Loans		Balance		No. of Loans		Balance
One- to four-family residential, including  condominium and cooperative apartment		1	$	32		2	$	598
Multifamily residential and residential mixed use		4		1,057		3		696
Commercial mixed use real estate		1		4,304		1		4,344
Commercial real estate		1		3,396		2		3,635
Total real estate		7	$	8,789		8	$	9,273

The following table summarizes outstanding TDRs by accrual status as of the dates indicated:

	As of June 30, 2016				As of December 31, 2015
	No. of Loans		Balance		No. of Loans		Balance
Outstanding principal balance at period end		7	$	8,789		8	$	9,273
TDRs on accrual status at period end		7		8,789		7		9,066
TDRs on non-accrual status at period end		-		-		1		207

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ALLOWANCE FOR LOAN LOSSES (Tables)

6 Months Ended

Jun. 30, 2016

ALLOWANCE FOR LOAN LOSSES [Abstract]

Allowance for Credit Losses for Impairment by Financing Receivables Class

The following table presents data regarding the allowance for loan losses and loans evaluated for impairment by class of loan within the real estate loan segment as well as for the aggregate consumer loan segment:

At or for the Three Months Ended June 30, 2016
	Real Estate Loans															Consumer Loans
	One- to Four Family Residential, Including Condominium and Cooperative Apartment			Multifamily Residential and Residential Mixed Use			Commercial Mixed Use Real Estate			Commercial Real Estate			Total Real Estate
Beginning balance	$	99		$	14,462		$	1,552		$	2,381		$	18,494		$	19
Provision (credit) for loan losses		96			407			133			(194	)		442			-
Charge-offs		(4	)		(43	)		(1	)		-			(48	)		-
Recoveries		1			-			-			-			1			1
Ending balance	$	192		$	14,826		$	1,684		$	2,187		$	18,889		$	20
Ending balance – loans individually evaluated for impairment	$	414		$	3,930		$	4,357		$	3,396		$	12,097		$	-
Ending balance – loans collectively evaluated for impairment		75,038			4,215,480			388,755			515,411			5,194,684			2,336
Allowance balance associated with loans individually evaluated for impairment		-			-			-			-			-			-
Allowance balance associated with loans collectively evaluated for impairment		192			14,826			1,684			2,187			18,889			20

At December 31, 2015
	Real Estate Loans										Consumer Loans
	One- to Four Family Residential, Including Condominium and Cooperative Apartment		Multifamily Residential and Residential Mixed Use		Commercial Mixed Use Real Estate		Commercial Real Estate		Total Real Estate
Ending balance – loans individually evaluated for impairment	$	598	$	983	$	4,345	$	3,635	$	9,561	$	-
Ending balance – loans collectively evaluated for impairment		71,497		3,758,924		372,930		482,274		4,685,625		1,590
Allowance balance associated with loans individually evaluated for impairment		-		-		-		-		-		-
Allowance balance associated with loans collectively evaluated for impairment		263		14,118		1,652		2,461		18,494		20

At or for the Three Months Ended June 30, 2015
	Real Estate Loans														Consumer Loans
	One- to Four Family Residential, Including Condominium and Cooperative Apartment			Multifamily Residential and Residential Mixed Use			Commercial Mixed Use Real Estate		Commercial Real Estate			Total Real Estate
Beginning balance	$	111		$	14,173		$	1,566	$	2,365		$	18,215		$	22
Provision (credit) for loan losses		19			238			111		(1,504	)		(1,136	)		1
Charge-offs		(5	)		(40	)		-		(1	)		(46	)		(1	)
Recoveries		1			3			5		1,489			1,498			-
Ending balance	$	126		$	14,374		$	1,682	$	2,349		$	18,531		$	22

At or for the Six Months Ended June 30, 2016
	Real Estate Loans															Consumer Loans
	One- to Four Family Residential, Including Condominium and Cooperative Apartment			Multifamily Residential and Residential Mixed Use			Commercial Mixed Use Real Estate			Commercial Real Estate			Total Real Estate
Beginning balance	$	263		$	14,118		$	1,652		$	2,461		$	18,494		$	20
Provision (credit) for loan losses		(46	)		731			34			(297	)		422			(1	)
Charge-offs		(27	)		(60	)		(2	)		-			(89	)		-
Recoveries		2			37			-			23			62			1
Ending balance	$	192		$	14,826		$	1,684		$	2,187		$	18,889		$	20

At or for the Six Months Ended June 30, 2015
	Real Estate Loans															Consumer Loans
	One- to Four Family Residential, Including Condominium and Cooperative Apartment			Multifamily Residential and Residential Mixed Use			Commercial Mixed Use Real Estate			Commercial Real Estate			Total Real Estate
Beginning balance	$	150		$	13,852		$	1,644		$	2,823		$	18,469		$	24
Provision (credit) for loan losses		80			560			51			(1,998	)		(1,307	)		-
Charge-offs		(107	)		(41	)		(37	)		(1	)		(186	)		(2	)
Recoveries		3			3			24			1,525			1,555			-
Ending balance	$	126		$	14,374		$	1,682		$	2,349		$	18,531		$	22

Summary of Impaired Real Estate Loans

The following tables summarize impaired real estate loans as of or for the periods indicated (by collateral type within the real estate loan segment):

	At June 30, 2016						At December 31, 2015
	Unpaid Principal Balance at Period End		Recorded Investment at Period End(1)		Reserve Balance Allocated within the Allowance for Loan Losses at Period End		Unpaid Principal Balance at Period End		Recorded Investment at Period End(1)		Reserve Balance Allocated within the Allowance for Loan Losses at Period End
One- to Four Family Residential, Including Condominium and Cooperative Apartment
With no allocated reserve	$	414	$	414	$	-	$	635	$	598	$	-
With an allocated reserve		-		-		-		-		-		-
Multifamily Residential and Residential Mixed Use
With no allocated reserve		3,930		3,930		-		983		983		-
With an allocated reserve		-		-		-		-		-		-
Commercial Mixed Use Real Estate
With no allocated reserve		4,357		4,357		-		4,345		4,345		-
With an allocated reserve		-		-		-		-		-		-
Commercial Real Estate
With no allocated reserve		3,396		3,396		-		3,642		3,635		-
With an allocated reserve		-		-		-		-		-		-
Total
With no allocated reserve	$	12,097	$	12,097	$	-	$	9,605	$	9,561	$	-
With an allocated reserve	$	-	$	-	$	-	$	-	$	-	$	-

(1) The recorded investment excludes accrued interest receivable and loan origination fees, net, due to immateriality.

	Three Months Ended June 30,								Six Months Ended June 30,
	2016				2015				2016				2015
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
One- to Four Family Residential, Including Condominium and Cooperative Apartment
With no allocated reserve	$	399	$	7	$	602	$	11	$	465	$	41	$	603	$	23
With an allocated reserve		-		-		-		-		-		-		-		-
Multifamily Residential and Residential Mixed Use
With no allocated reserve		2,451		25		985		31		1,962		38		1,081		46
With an allocated reserve		-		-		-		-		-		-		-		-
Commercial Mixed Use Real Estate
With no allocated reserve		4,367		44		4,393		44		4,360		88		4,395		88
With an allocated reserve		-		-		-		-		-		-		-		-
Commercial Real Estate
With no allocated reserve		3,404		34		5,929		35		3,481		68		6,688		71
With an allocated reserve		-		-		-		-		-		-		1,833		97
Total
With no allocated reserve	$	10,621	$	110	$	11,909	$	121	$	10,268	$	235	$	12,767	$	228
With an allocated reserve	$	-	$	-	$	-	$	-	$	-	$	-	$	1,833	$	97

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INVESTMENT AND MORTGAGE-BACKED SECURITIES (Tables)

6 Months Ended

Jun. 30, 2016

INVESTMENT AND MORTGAGE-BACKED SECURITIES [Abstract]

Summary of Major Categories of Securities Owned by Entity

The following is a summary of major categories of securities owned by the Company (excluding trading securities) at June 30, 2016:

	Purchase Amortized/ Historical Cost		Recorded Amortized/ Historical Cost (1)		Unrealized Gains		Unrealized Losses			Fair Value
Investment securities held-to-maturity:
Pooled bank trust preferred securities ("TRUPS")	$	15,326	$	5,319	$	1,955	$	(469	)	$	6,805
Available-for-sale securities:
Investment securities
Registered Mutual Funds		4,011		4,011		20		(194	)		3,837
MBS
Pass-through MBS issued by GSEs		392		392		14		-			406

(1)  Amount represents the purchase amortized / historical cost less any OTTI charges (credit or non-credit related) previously recognized.  For the TRUPS, amount is also net of the $781 unamortized portion of the unrealized loss that was recognized in accumulated other comprehensive loss on September 1, 2008 (the day on which these securities were transferred from available-for-sale to held-to-maturity).

The following is a summary of major categories of securities owned by the Company (excluding trading securities) at December 31, 2015:

	Purchase Amortized/ Historical Cost		Recorded Amortized/ Historical Cost (1)		Unrealized Gains		Unrealized Losses			Fair Value
Investment securities held-to-maturity:
TRUPS	$	15,344	$	5,242	$	2,154	$	(345	)	$	7,051
Available-for-sale securities:
Investment securities
Registered Mutual Funds		3,990		3,990		25		(259	)		3,756
MBS
Pass-through MBS issued by GSEs		418		418		13		-			431

(1)  Amount represents the purchase amortized/historical cost less any OTTI charges (credit or non-credit related) previously recognized.  For the TRUPS, amount is also net of the $807 unamortized portion of the unrealized loss that was recognized in accumulated other comprehensive loss on September 1, 2008 (the day on which these securities were transferred from available-for-sale to held-to-maturity).

Reconciliation of Pre-Tax OTTI Charges Recognized

The following table provides a reconciliation of the pre-tax OTTI charges recognized on the Company's TRUPS:

	At or for the Three Months Ended June 30, 2016								At or for the Three Months Ended June 30, 2015
	Credit Related OTTI Recognized in Earnings			Non-Credit OTTI Recognized in Accumulated Other Comprehensive Loss			Total OTTI		Credit Related OTTI Recognized in Earnings			Non-Credit OTTI Recognized in Accumulated Other Comprehensive Loss		Total OTTI
Cumulative pre-tax balance at the beginning of the period	$	8,691		$	570		$	9,261	$	8,795		$	561	$	9,356
Accretion (Amortization) of previously recognized OTTI		(26	)		(8	)		(34)		(26	)		35		9
Cumulative pre-tax balance at end of the period	$	8,665		$	562		$	9,227	$	8,769		$	596	$	9,365

	At or for the Six Months Ended June 30, 2016								At or for the Six Months Ended June 30, 2015
	Credit Related OTTI Recognized in Earnings			Non-Credit OTTI Recognized in Accumulated Other Comprehensive Loss			Total OTTI		Credit Related OTTI Recognized in Earnings			Non-Credit OTTI Recognized in Accumulated Other Comprehensive Loss		Total OTTI
Cumulative pre-tax balance at the beginning of the period	$	8,717		$	578		$	9,295	$	8,945		$	569	$	9,514
Accretion (Amortization) of previously recognized OTTI		(52	)		(16	)		(68)		(176	)		27		(149	)
Cumulative pre-tax balance at end of the period	$	8,665		$	562		$	9,227	$	8,769		$	596	$	9,365

Summary of Gross Unrealized Losses and Fair Value of Investment Securities by Investment Category and Length of Time in a Continuous Unrealized Loss Position

The following table summarizes the gross unrealized losses and fair value of investment securities as of June 30, 2016, aggregated by investment category and the length of time the securities were in a continuous unrealized loss position:

	Less than 12 Months Consecutive Unrealized Losses				12 Months or More Consecutive Unrealized Losses				Total
	Fair Value		Gross Unrecognized/ Unrealized Losses		Fair Value		Gross Unrecognized/ Unrealized Losses		Fair Value		Gross Unrecognized/ Unrealized Losses
Held-to-Maturity Securities:
TRUPS	$	-	$	-	$	2,255	$	469	$	2,255	$	469
Available-for-Sale Securities:
Registered Mutual Funds		371		8		3,121		186		3,492		194

The following table summarizes the gross unrealized losses and fair value of investment securities as of December 31, 2015, aggregated by investment category and the length of time the securities were in a continuous unrealized loss position:

	Less than 12 Months Consecutive Unrealized Losses				12 Months or More Consecutive Unrealized Losses				Total
	Fair Value		Gross Unrecognized/ Unrealized Losses		Fair Value		Gross Unrecognized/ Unrealized Losses		Fair Value		Gross Unrecognized/ Unrealized Losses
Held-to-Maturity Securities:
TRUPS	$	-	$	-	$	2,359	$	345	$	2,359	$	345
Available-for-Sale Securities:
Registered Mutual Funds		3,026		259		-		-		3,026		259

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DERIVATIVES AND HEDGING ACTIVITIES (Tables)

6 Months Ended

Jun. 30, 2016

DERIVATIVES AND HEDGING ACTIVITIES [Abstract]

Fair Value of Derivative Financial Instruments and Classification on Consolidated Statements of Financial Condition

Amounts reported in accumulated other comprehensive loss related to derivatives will be reclassified to interest expense as interest payments are paid on the Company’s liabilities.

The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Statement of Financial Condition:

	At June 30, 2016
	Count		Notional Amount		Fair Value Assets		Fair Value Liabilities
Derivatives designated as hedging instruments
Interest Rate Products		4	$	90,000	$	-	$	957
Total derivatives designated as hedging instruments		4	$	90,000	$	-	$	957

Weighted average pay rates	1.24%
Weighted average receive rates	0.64%
Weighted average maturity	5.82 years

Effect of Derivative Financial Instruments on Consolidated Statements of Income

The table below presents the effect of the Company’s derivative financial instruments as the amount of gain or (loss) on the Consolidated Statements of Income as of June 30, 2016:

	At or for the Three and Six Months Ended June 30, 2016
	Amount of Gain or (Loss) Recognized in Other Comprehensive Income (Effective Portion)			Amount of Gain or (Loss) Reclassified from Other Comprehensive Income into Interest Expense (Effective Portion)			Amount of Gain or (Loss) Recognized in Other Non-Interest Expense (Ineffective Portion)
Interest Rate Products	$	(998	)	$	(41	)	$	-

Offsetting of Derivative Liabilities

The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of June 30, 2016. The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the Consolidated Statements of Financial Condition.

Offsetting of Derivative Liabilities as of June 30, 2016:

	Gross Amounts of Recognized Liabilities		Gross Amounts Offset in the Statements of Financial Condition		Net Amounts of Assets presented in the Statements of Financial Condition		Gross Amounts Not Offset in the Statements of Financial Condition				Net Amount
							Financial Instruments		Cash Collateral Received
Counterparty A	$	957	$	-	$	957	$	-	$	-	$	957

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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Jun. 30, 2016

FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract]

Schedule of Assets and Liabilities Measured on Recurring Basis

The following tables present the assets that are reported on the consolidated statements of financial condition at fair value as of the date indicated segmented by level within the fair value hierarchy.  Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

Assets and Liabilities Measured at Fair Value on a Recurring Basis at June 30, 2016
			Fair Value Measurements Using
Description	Total		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
Financial Assets
Trading securities (Registered Mutual Funds):
Domestic Equity Mutual Funds	$	787	$	787	$	-	$	-
International Equity Mutual Funds		207		207		-		-
Fixed Income Mutual Funds		5,820		5,820		-		-
Investment securities available-for-sale:
Registered Mutual Funds:
Domestic Equity Mutual Funds		1,244		1,244		-		-
International Equity Mutual Funds		374		374		-		-
Fixed Income Mutual Funds		2,219		2,219		-		-
Pass-through MBS issued by GSEs		406		-		406		-
Financial Liabilities
Derivative – interest rate product	$	957		-	$	957		-

Assets Measured at Fair Value on a Recurring Basis at December 31, 2015
			Fair Value Measurements Using
Description	Total		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs
Trading securities (Registered Mutual Funds):
Domestic Equity Mutual Funds	$	1,053	$	1,053	$	-	$	-
International Equity Mutual Funds		281		281		-		-
Fixed Income Mutual Funds		8,867		8,867		-		-
Investment securities available-for-sale:
Registered Mutual Funds:
Domestic Equity Mutual Funds		1,253		1,253		-		-
International Equity Mutual Funds		383		383		-		-
Fixed Income Mutual Funds		2,120		2,120		-		-
Pass-through MBS issued by GSEs		431		-		431		-

Carrying Amounts and Estimated Fair Values of Financial Instruments

The carrying amounts and estimated fair values of financial instruments other than those measured at fair value on either a recurring or non-recurring basis at June 30, 2016 and December 31, 2015 were as follows:

			Fair Value at June 30, 2016 Using
At June 30, 2016	Carrying Amount		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total
Assets:
Cash and due from banks	$	89,927	$	89,927	$	-	$	-	$	89,927
Investment securities held to maturity (TRUPS)		5,319		-				6,805		6,805
Loans, net		5,190,208		-		-		5,213,167		5,213,167
Accrued interest receivable		14,896		-		2		14,894		14,896
FHLBNY capital stock		52,814		N/A		N/A		N/A		N/A
Liabilities:
Savings, money market and checking accounts		2,745,744		2,745,744		-		-		2,745,744
Certificates of Deposit ("CDs")		1,034,522		-		1,043,254		-		1,043,354
Escrow and other deposits		92,290		92,964		-		-		92,964
FHLBNY Advances		1,017,125		-		1,026,682		-		1,026,682
Trust Preferred securities payable		70,680		-		69,973		-		69,973
Accrued interest payable		2,156		-		2,156		-		2,156

			Fair Value at December 31, 2015 Using
At December 31, 2015	Carrying Amount		Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total
Assets:
Cash and due from banks	$	64,154	$	64,154	$	-	$	-	$	64,154
Investment securities held to maturity (TRUPS)		5,242		-		-		7,051		7,051
Loans, net		4,678,262		-		-		4,722,803		4,722,803
Accrued interest receivable		13,486		-		19		13,467		12,664
FHLBNY capital stock		58,713		N/A		N/A		N/A		N/A
Liabilities:
Savings, money market and checking accounts		2,325,463		2,325,463		-		-		2,325,463
CDs		858,847		-		865,581		-		865,581
Escrow and other deposits		77,130		77,130		-		-		77,130
FHLBNY Advances		1,166,725		-		1,170,274		-		1,170,274
Trust Preferred securities payable		70,680		-		69,973		-		69,973
Accrued interest payable		2,259		-		2,259		-		2,259

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RETIREMENT AND POSTRETIREMENT PLANS (Tables)

6 Months Ended

Jun. 30, 2016

RETIREMENT AND POSTRETIREMENT PLANS [Abstract]

Schedule of Net Benefit Costs

Net expenses associated with these plans were comprised of the following components:

	Three Months Ended June 30, 2016						Three Months Ended June 30, 2015
	BMP, Employee and Outside Director Retirement Plans			Postretirement Plan			BMP, Employee and Outside Director Retirement Plans			Postretirement Plan
Service cost	$	-		$	-		$	-		$	-
Interest cost		343			16			343			29
Expected return on assets		(383	)		-			(414	)		-
Unrecognized past service liability		-			(2	)		-			-
Amortization of unrealized loss		428			(1	)		480			(13	)
Net periodic cost	$	388		$	13		$	409		$	16

	Six Months Ended June 30, 2016						Six Months Ended June 30, 2015
	BMP, Employee and Outside Director Retirement Plans			Postretirement Plan			BMP, Employee and Outside Director Retirement Plans			Postretirement Plan
Service cost	$	-		$	-		$	-		$	9
Interest cost		686			32			687			538
Expected return on assets		(766	)		-			(828	)		-
Curtailment gain(1)		-			-			-			(3,394	)
Unrecognized past service liability		-			(4	)		-			-
Amortization of unrealized loss		858			(2	)		959			(25	)
Net periodic cost (gain)	$	778		$	26		$	818		$	(2,872	)

(1) The Postretirement Plan was amended effective March 31, 2015, whereby future retirees will not be eligible to participate in the plan. This plan amendment resulted in a curtailment gain.

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NATURE OF OPERATIONS (Details)	6 Months Ended
	Jun. 30, 2016 RetailBranch
NATURE OF OPERATIONS [Abstract]
Number of retail banking offices	25

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TREASURY STOCK (Details) - $ / shares			3 Months Ended		6 Months Ended
	Apr. 29, 2016	Mar. 24, 2016	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Equity, Class of Treasury Stock [Line Items]
Number of treasury shares repurchased during the period (in shares)			0	0	0	20,000
Average price of treasury shares acquired during the period (in dollars per share)						$ 15.00
Issuance of treasury stock (in shares)		28,044
Closing price of company stock (in dollars per share)	$ 18.11	$ 17.35
2013 Equity and Incentive Plan [Member]
Equity, Class of Treasury Stock [Line Items]
Issuance of treasury stock (in shares)	60,675
BMP [Member]
Equity, Class of Treasury Stock [Line Items]
Issuance of treasury stock (in shares)	12,424

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OTHER COMPREHENSIVE INCOME (LOSS), Before and After Tax Amounts by Component (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Other Comprehensive Income (Loss) [Abstract]
Change in net unrealized gain during the period, tax expense (benefit)	$ 21	$ (2)	$ 28	$ 15
Change in net unrealized gain during the period, after tax amount	26	(4)	34	20
Reclassification adjustment for net gains included in net gain on securities and other assets, tax expense (benefit)		2		(624)
Reclassification adjustment for net gains included in net gain on securities and other assets, after tax amount	0	(2)	0	760
Total defined benefit plans, tax expense (benefit)	191	210	382	(58)
Change in unrealized loss on derivative liability, tax expense (benefit)	(431)		(431)
Change in unrealized loss on derivative liability, after tax amount	(526)	0	(526)	0
Total other comprehensive income (loss), pre tax amount	(463)	450	(4)	(1,460)
Total other comprehensive income (loss), tax expense (benefit)	(209)	202	2	(658)
Total other comprehensive income (loss), after tax amount	(254)	248	(2)	(802)
Derivatives Liabilities [Member]
Other Comprehensive Income (Loss) [Abstract]
Change in unrealized loss on derivative liability, pre-tax amount	(957)		(957)
Change in unrealized loss on derivative liability, tax expense (benefit)	(431)		(431)
Change in unrealized loss on derivative liability, after tax amount	(526)		(526)
Total derivatives, pre-tax amount	(957)		(957)
Total derivatives, tax expense (benefit)	(431)		(431)
Total derivatives, after tax amount	(526)		(526)
Securities Held-to-Maturity and Transferred Securities [Member]
Other Comprehensive Income (Loss) [Abstract]
Change in non-credit component of OTTI, pre-tax amount	8	(35)	16	(27)
Change in non-credit component of OTTI, tax expense (benefit)	4	(16)	8	(12)
Change in non-credit component of OTTI, after tax amount	4	(19)	8	(15)
Change in unrealized loss on securities transferred to held-to-maturity, pre-tax amount	14	22	25	46
Change in unrealized loss on securities transferred to held-to-maturity, tax expense (benefit)	6	10	11	21
Change in unrealized loss on securities transferred to held-to-maturity, after tax amount	8	12	14	25
Total securities held-to-maturity and transferred securities, pre-tax amount	22	(13)	41	19
Total securities held-to-maturity and transferred securities, tax expense (benefit)	10	(6)	19	9
Total securities held-to-maturity and transferred securities, after tax amount	12	(7)	22	10
Securities Available-for-Sale [Member]
Other Comprehensive Income (Loss) [Abstract]
Change in net unrealized gain during the period, pre-tax amount	47	(8)	62	35
Change in net unrealized gain during the period, tax expense (benefit)	21	(4)	28	15
Change in net unrealized gain during the period, after tax amount	26	(4)	34	20
Total securities available-for-sale, pre-tax amount	47	(4)	62	(1,349)
Total securities available-for-sale, tax expense (benefit)	21	(2)	28	(609)
Total securities available-for-sale, after tax amount	26	(2)	34	(740)
Defined Benefit Plans [Member]
Other Comprehensive Income (Loss) [Abstract]
Change in the net actuarial gain or loss, pre-tax amount				(1,064)
Change in the net actuarial gain or loss, tax expense (benefit)				(478)
Change in the net actuarial gain or loss, after tax amount				(586)
Total defined benefit plans, pre-tax amount	425	467	850	(130)
Total defined benefit plans, tax expense (benefit)	191	210	382	(58)
Total defined benefit plans, after tax amount	234	257	468	(72)
Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | Securities Available-for-Sale [Member]
Other Comprehensive Income (Loss) [Abstract]
Reclassification adjustment for net gains included in net gain on securities and other assets, pre-tax amount		4		(1,384)
Reclassification adjustment for net gains included in net gain on securities and other assets, tax expense (benefit)		2		(624)
Reclassification adjustment for net gains included in net gain on securities and other assets, after tax amount		2		(760)
Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | Defined Benefit Plans [Member]
Other Comprehensive Income (Loss) [Abstract]
Reclassification adjustment for expense included in salaries and employee benefits expense, pre-tax amount	425	467	850	934
Reclassification adjustment for expense included in salaries and employee benefits expense, tax expense (benefit)	191	210	382	420
Reclassification adjustment for expense included in salaries and employee benefits expense, after tax amount	$ 234	$ 257	$ 468	$ 514

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OTHER COMPREHENSIVE INCOME (LOSS), Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	$ 493,947
Other comprehensive income (loss) before reclassifications	(470)	$ (556)
Amounts reclassified from accumulated other comprehensive loss	468	(246)
Net other comprehensive income (loss) during the period	(2)	(802)
Balance	549,611	477,947
Derivatives Liability [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	0	0
Other comprehensive income (loss) before reclassifications	(526)	0
Amounts reclassified from accumulated other comprehensive loss	0	0
Net other comprehensive income (loss) during the period	(526)	0
Balance	(526)	0
Accumulated Other Comprehensive Loss [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(8,801)	(8,547)
Balance	(8,803)	(9,349)
Securities Held-to-Maturity and Transferred Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(760)	(826)
Other comprehensive income (loss) before reclassifications	22	10
Amounts reclassified from accumulated other comprehensive loss	0	0
Net other comprehensive income (loss) during the period	22	10
Balance	(738)	(816)
Securities Available-for-Sale [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(122)	736
Other comprehensive income (loss) before reclassifications	34	20
Amounts reclassified from accumulated other comprehensive loss	0	(760)
Net other comprehensive income (loss) during the period	34	(740)
Balance	(88)	(4)
Defined Benefit Plans [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Balance	(7,919)	(8,457)
Other comprehensive income (loss) before reclassifications	0	(586)
Amounts reclassified from accumulated other comprehensive loss	468	514
Net other comprehensive income (loss) during the period	468	(72)
Balance	$ (7,451)	$ (8,529)

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EARNINGS PER SHARE ("EPS") (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
EARNINGS PER SHARE ("EPS") [Abstract]
Net income per the Consolidated Statements of Income	$ 11,208	$ 11,529	$ 61,245	$ 23,307
Less: Dividends paid and earnings allocated to participating securities	(24)	(33)	(55)	(73)
Income attributable to common stock	$ 11,184	$ 11,496	$ 61,190	$ 23,234
Weighted average common shares outstanding, including participating securities (in shares)	36,946,082	36,412,733	36,874,535	36,344,359
Less: weighted average participating securities (in shares)	(192,525)	(245,046)	(202,885)	(266,424)
Weighted average shares outstanding (in shares)	36,753,557	36,167,687	36,671,650	36,077,935
Basic EPS (in dollars per share)	$ 0.30	$ 0.32	$ 1.67	$ 0.65
Income attributable to common stock	$ 11,184	$ 11,496	$ 61,190	$ 23,234
Weighted average common shares outstanding (in shares)	36,753,557	36,167,687	36,671,650	36,077,935
Weighted average common equivalent shares outstanding (in shares)	65,028	91,690	69,420	80,886
Weighted average common and equivalent shares outstanding (in shares)	36,818,585	36,259,377	36,741,070	36,158,821
Diluted EPS (in dollars per share)	$ 0.30	$ 0.32	$ 1.67	$ 0.64
Stock Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Weighted average shares excluded from earnings per share calculation (in shares)	80,000	126,453	80,000	136,292

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ACCOUNTING FOR STOCK BASED COMPENSATION, Stock Option Awards (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Stock Option Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding - beginning of period (in shares)	465,246	905,780	465,246	979,916
Options granted (in shares)	0	0	0	0
Options exercised (in shares)	(193,828)	(259,579)	(193,828)	(274,355)
Options that expired prior to exercise (in shares)	0	0	0	(59,360)
Options outstanding - end of period (in shares)	271,418	646,201	271,418	646,201
Intrinsic value of options exercised	$ 732	$ 300	$ 732	$ 384
Compensation expense recognized	0	8	0	31
Remaining unrecognized compensation expense	0	0	0	0
Intrinsic value of outstanding options at period end	553	1,632	553	1,632
Intrinsic value of vested options at period end	$ 553	$ 1,632	$ 553	$ 1,632
Weighted average exercise price of vested options - end of period (in dollars per share)	$ 15.32	$ 14.57	$ 15.32	$ 14.57
Restricted Stock Awards [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense recognized	$ 390	$ 455	$ 828	$ 984

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ACCOUNTING FOR STOCK BASED COMPENSATION, Restricted Stock Awards (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Stock Option Awards [Member]
Summary of Restricted Stock Awards [Roll Forward]
Compensation recorded to expense	$ 0	$ 8	$ 0	$ 31
Restricted Stock Awards [Member]
Restricted Stock Awards [Abstract]
Award vesting period			4 years
Summary of Restricted Stock Awards [Roll Forward]
Unvested allocated shares - beginning of period (in shares)	222,142	285,610	223,894	289,660
Shares granted (in shares)	60,675	68,069	60,675	68,069
Shares vested (in shares)	(115,135)	(128,327)	(116,001)	(132,377)
Shares forfeited (in shares)	(12,863)	(980)	(13,749)	(980)
Unvested allocated shares - end of period (in shares)	154,819	224,372	154,819	224,372
Compensation recorded to expense	$ 390	$ 455	$ 828	$ 984

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ACCOUNTING FOR STOCK BASED COMPENSATION, Performance Based Equity Awards (Details) - Performance Based Equity Awards [Member] - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2016
Performance Based Equity Awards [Abstract]
Percentage of threshold target for each award eligible to be earned based on relative performance		50.00%
Percentage of target for each award eligible to be earned based on relative performance		100.00%
Percentage of maximum target for each award eligible to be earned based on relative performance		150.00%
Measurement period goals related to long term cash incentive payment plan awards payment		3 years
Summary of Performance Based Equity Awards [Roll Forward]
Aggregate share payout - beginning of period	$ 28,044	$ 28,044
Shares forfeited	(3,312)	(3,312)
Aggregate share payout - end of period	24,732	24,732
Aggregate share payout	0	0
Likely aggregate share payout	16,488	16,488
Compensation expense recognized	$ 21	$ 21

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LOANS RECEIVABLE AND CREDIT QUALITY, Credit Quality Indicators (Details) - USD ($) $ in Thousands		Jun. 30, 2016	Dec. 31, 2015
Financing Receivable, Recorded Investment [Line Items]
Total real estate loans		$ 5,206,781	$ 4,695,186
Total consumer loans		2,336	1,590
Real Estate Loan [Member] | Not Graded [Member]
Financing Receivable, Recorded Investment [Line Items]
Total real estate loans	[1]		7,698
Real Estate Loan [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total real estate loans		5,174,144	4,647,906
Real Estate Loan [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total real estate loans		9,379	17,183
Real Estate Loan [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total real estate loans		23,258	22,399
Real Estate Loan [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total real estate loans		0	0
Real Estate Loan [Member] | One- to Four-Family Residential, Including Condominium and Cooperative Apartment [Member]
Financing Receivable, Recorded Investment [Line Items]
Total real estate loans		75,452	72,095
Real Estate Loan [Member] | One- to Four-Family Residential, Including Condominium and Cooperative Apartment [Member] | Not Graded [Member]
Financing Receivable, Recorded Investment [Line Items]
Total real estate loans	[1]		7,698
Real Estate Loan [Member] | One- to Four-Family Residential, Including Condominium and Cooperative Apartment [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total real estate loans		72,366	61,256
Real Estate Loan [Member] | One- to Four-Family Residential, Including Condominium and Cooperative Apartment [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total real estate loans		935	945
Real Estate Loan [Member] | One- to Four-Family Residential, Including Condominium and Cooperative Apartment [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total real estate loans		2,151	2,196
Real Estate Loan [Member] | One- to Four-Family Residential, Including Condominium and Cooperative Apartment [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total real estate loans		0	0
Real Estate Loan [Member] | Multifamily Residential and Residential Mixed Use [Member]
Financing Receivable, Recorded Investment [Line Items]
Total real estate loans		4,219,410	3,759,907
Real Estate Loan [Member] | Multifamily Residential and Residential Mixed Use [Member] | Not Graded [Member]
Financing Receivable, Recorded Investment [Line Items]
Total real estate loans	[1]		0
Real Estate Loan [Member] | Multifamily Residential and Residential Mixed Use [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total real estate loans		4,205,375	3,743,298
Real Estate Loan [Member] | Multifamily Residential and Residential Mixed Use [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total real estate loans		5,068	9,759
Real Estate Loan [Member] | Multifamily Residential and Residential Mixed Use [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total real estate loans		8,967	6,850
Real Estate Loan [Member] | Multifamily Residential and Residential Mixed Use [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total real estate loans		0	0
Real Estate Loan [Member] | Commercial Mixed Use Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total real estate loans		393,112	377,275
Real Estate Loan [Member] | Commercial Mixed Use Real Estate [Member] | Not Graded [Member]
Financing Receivable, Recorded Investment [Line Items]
Total real estate loans	[1]		0
Real Estate Loan [Member] | Commercial Mixed Use Real Estate [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total real estate loans		385,432	370,110
Real Estate Loan [Member] | Commercial Mixed Use Real Estate [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total real estate loans		2,146	1,622
Real Estate Loan [Member] | Commercial Mixed Use Real Estate [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total real estate loans		5,534	5,543
Real Estate Loan [Member] | Commercial Mixed Use Real Estate [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total real estate loans		0	0
Real Estate Loan [Member] | Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total real estate loans		518,807	485,909
Real Estate Loan [Member] | Commercial Real Estate [Member] | Not Graded [Member]
Financing Receivable, Recorded Investment [Line Items]
Total real estate loans	[1]		0
Real Estate Loan [Member] | Commercial Real Estate [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total real estate loans		510,971	473,242
Real Estate Loan [Member] | Commercial Real Estate [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total real estate loans		1,230	4,857
Real Estate Loan [Member] | Commercial Real Estate [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total real estate loans		6,606	7,810
Real Estate Loan [Member] | Commercial Real Estate [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total real estate loans		0	0
Consumer Loans [Member] | Performing [Member]
Financing Receivable, Recorded Investment [Line Items]
Total consumer loans		2,332	1,586
Consumer Loans [Member] | Non-Accrual [Member]
Financing Receivable, Recorded Investment [Line Items]
Total consumer loans		$ 4	$ 4

[1] Amount comprised of fully performing one- to four-family residential and condominium and cooperative unit loans with balances equal to or less than the FNMA Limits.

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LOANS RECEIVABLE AND CREDIT QUALITY, Past Due (Details) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2016 USD ($) Loan		Dec. 31, 2015 USD ($) Loan
Financing Receivable, Recorded Investment, Aging [Abstract]
Total real estate loans	$ 5,206,781		$ 4,695,186
Total consumer loans	$ 2,336		$ 1,590
Number of real estate loans more than 90 days past due on contractual balloon payment | Loan	8		12
Real Estate Loans [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Non-accrual	$ 4,325	[1]	$ 1,607	[2]
Past due	9,394		9,107
Current	5,197,387		4,686,079
Real Estate Loans [Member] | 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Past due	381		2,562
Real Estate Loans [Member] | 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Past due	154		406
Real Estate Loans [Member] | Loans 90 Days or More Past Due and Still Accruing Interest [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Past due	4,534		4,532
Real Estate Loans [Member] | One- to Four-Family Residential, Including Condominium and Cooperative Apartment [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Non-accrual	487	[1]	1,113	[2]
Past due	641		1,865
Current	74,811		70,230
Total real estate loans	75,452		72,095
Real Estate Loans [Member] | One- to Four-Family Residential, Including Condominium and Cooperative Apartment [Member] | 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Past due	0		127
Real Estate Loans [Member] | One- to Four-Family Residential, Including Condominium and Cooperative Apartment [Member] | 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Past due	154		0
Real Estate Loans [Member] | One- to Four-Family Residential, Including Condominium and Cooperative Apartment [Member] | Loans 90 Days or More Past Due and Still Accruing Interest [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Past due	0		625
Real Estate Loans [Member] | Multifamily Residential and Residential Mixed Use [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Non-accrual	3,784	[1]	287	[2]
Past due	8,213		5,036
Current	4,211,197		3,754,871
Total real estate loans	4,219,410		3,759,907
Real Estate Loans [Member] | Multifamily Residential and Residential Mixed Use [Member] | 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Past due	85		2,235
Real Estate Loans [Member] | Multifamily Residential and Residential Mixed Use [Member] | 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Past due	0		0
Real Estate Loans [Member] | Multifamily Residential and Residential Mixed Use [Member] | Loans 90 Days or More Past Due and Still Accruing Interest [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Past due	4,344		2,514
Real Estate Loans [Member] | Commercial Mixed Use Real Estate [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Non-accrual	54	[1]	0	[2]
Past due	360		812
Current	392,752		376,463
Total real estate loans	393,112		377,275
Real Estate Loans [Member] | Commercial Mixed Use Real Estate [Member] | 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Past due	116		0
Real Estate Loans [Member] | Commercial Mixed Use Real Estate [Member] | 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Past due	0		406
Real Estate Loans [Member] | Commercial Mixed Use Real Estate [Member] | Loans 90 Days or More Past Due and Still Accruing Interest [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Past due	190		406
Real Estate Loans [Member] | Commercial Real Estate [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Non-accrual	0	[1]	207	[2]
Past due	180		1,394
Current	518,627		484,515
Total real estate loans	518,807		485,909
Real Estate Loans [Member] | Commercial Real Estate [Member] | 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Past due	180		200
Real Estate Loans [Member] | Commercial Real Estate [Member] | 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Past due	0		0
Real Estate Loans [Member] | Commercial Real Estate [Member] | Loans 90 Days or More Past Due and Still Accruing Interest [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Past due	0		987
Consumer [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Non-accrual	4	[1]	4	[2]
Past due	0		6
Current	2,332		1,584
Consumer [Member] | 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Past due	0		1
Consumer [Member] | 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Past due	0		1
Consumer [Member] | Loans 90 Days or More Past Due and Still Accruing Interest [Member]
Financing Receivable, Recorded Investment, Aging [Abstract]
Past due	$ 0		$ 0

[1] Includes all loans on non-accrual status regardless of the number of days such loans were delinquent as of June 30, 2016.

[2] Includes all loans on non-accrual status regardless of the number of days such loans were delinquent as of December 31, 2015.

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LOANS RECEIVABLE AND CREDIT QUALITY, Troubled Debt Restructurings (Details) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016 USD ($) Loan	Jun. 30, 2015 Loan	Jun. 30, 2016 USD ($) Loan	Jun. 30, 2015 Loan	Dec. 31, 2015 USD ($) Loan
Troubled Debt Restructuring on Receivables [Abstract]
Number of loans modified	1	0	1	0
Number of loan committed to borrowers	0		0		0
Real Estate Loans [Member]
Troubled Debt Restructuring on Receivables [Abstract]
Number of loans	7		7		8
Recorded investment | $	$ 8,789		$ 8,789		$ 9,273
TDRs on accrual status, number of loans	7		7		7
TDRs on accrual status, amount | $	$ 8,789		$ 8,789		$ 9,066
TDRs on non-accrual status, number of loans	0		0		1
TDRs on non-accrual status, amount | $	$ 0		$ 0		$ 207
Real Estate Loans [Member] | One- to Four-Family Residential, Including Condominium and Cooperative Apartment [Member]
Troubled Debt Restructuring on Receivables [Abstract]
Number of loans			1		2
Recorded investment | $	32		$ 32		$ 598
Real Estate Loans [Member] | Multifamily Residential and Residential Mixed Use [Member]
Troubled Debt Restructuring on Receivables [Abstract]
Number of loans			4		3
Recorded investment | $	1,057		$ 1,057		$ 696
Real Estate Loans [Member] | Commercial Mixed Use Real Estate [Member]
Troubled Debt Restructuring on Receivables [Abstract]
Number of loans			1		1
Recorded investment | $	4,304		$ 4,304		$ 4,344
Real Estate Loans [Member] | Commercial Real Estate [Member]
Troubled Debt Restructuring on Receivables [Abstract]
Number of loans			1		2
Recorded investment | $	$ 3,396		$ 3,396		$ 3,635

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ALLOWANCE FOR LOAN LOSSES, Allowance by Class of Loan (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Financing Receivable, Allowance for Credit Losses [Line Items]
Loans classified as Substandard analysis of historical losses period			12 months		12 months
Portion of allowance for loan losses attributable to non-impaired Substandard loans	$ 99		$ 99		$ 348
Decrease in amount of non-impaired Substandard loans			(1,943)
Portion of allowance for loan losses attributable to non-impaired Special Mention loans	71		$ 71		$ 88
Loans classified as Special Mention analysis of historical losses period			12 months		12 months
Decrease in balance of non-impaired Special Mention loans			$ (7,804)
Allowance for credit losses [Roll Forward]
Provision (credit) for loan losses	442	$ (1,135)	421	$ (1,307)
Real Estate Loans [Member]
Allowance for credit losses [Roll Forward]
Beginning balance	18,494	18,215	18,494	18,469	$ 18,469
Provision (credit) for loan losses	442	(1,136)	422	(1,307)
Charge-offs	(48)	(46)	(89)	(186)
Recoveries	1	1,498	62	1,555
Ending balance	18,889	18,531	18,889	18,531	18,494
Ending balance - loans individually evaluated for impairment	12,097		12,097		9,561
Ending balance - loans collectively evaluated for impairment	5,194,684		5,194,684		4,685,625
Allowance balance associated with loans individually evaluated for impairment	0		0		0
Allowance balance associated with loans collectively evaluated for impairment	18,889		18,889		18,494
Real Estate Loans [Member] | One- to Four-Family Residential, Including Condominium and Cooperative Apartment [Member]
Allowance for credit losses [Roll Forward]
Beginning balance	99	111	263	150	150
Provision (credit) for loan losses	96	19	(46)	80
Charge-offs	(4)	(5)	(27)	(107)
Recoveries	1	1	2	3
Ending balance	192	126	192	126	263
Ending balance - loans individually evaluated for impairment	414		414		598
Ending balance - loans collectively evaluated for impairment	75,038		75,038		71,497
Allowance balance associated with loans individually evaluated for impairment	0		0		0
Allowance balance associated with loans collectively evaluated for impairment	192		192		263
Real Estate Loans [Member] | Multifamily Residential and Residential Mixed Use [Member]
Allowance for credit losses [Roll Forward]
Beginning balance	14,462	14,173	14,118	13,852	13,852
Provision (credit) for loan losses	407	238	731	560
Charge-offs	(43)	(40)	(60)	(41)
Recoveries	0	3	37	3
Ending balance	14,826	14,374	14,826	14,374	14,118
Ending balance - loans individually evaluated for impairment	3,930		3,930		983
Ending balance - loans collectively evaluated for impairment	4,215,480		4,215,480		3,758,924
Allowance balance associated with loans individually evaluated for impairment	0		0		0
Allowance balance associated with loans collectively evaluated for impairment	14,826		14,826		14,118
Real Estate Loans [Member] | Commercial Mixed Use Real Estate [Member]
Allowance for credit losses [Roll Forward]
Beginning balance	1,552	1,566	1,652	1,644	1,644
Provision (credit) for loan losses	133	111	34	51
Charge-offs	(1)	0	(2)	(37)
Recoveries	0	5	0	24
Ending balance	1,684	1,682	1,684	1,682	1,652
Ending balance - loans individually evaluated for impairment	4,357		4,357		4,345
Ending balance - loans collectively evaluated for impairment	388,755		388,755		372,930
Allowance balance associated with loans individually evaluated for impairment	0		0		0
Allowance balance associated with loans collectively evaluated for impairment	1,684		1,684		1,652
Real Estate Loans [Member] | Commercial Real Estate [Member]
Allowance for credit losses [Roll Forward]
Beginning balance	2,381	2,365	2,461	2,823	2,823
Provision (credit) for loan losses	(194)	(1,504)	(297)	(1,998)
Charge-offs	0	(1)	0	(1)
Recoveries	0	1,489	23	1,525
Ending balance	2,187	2,349	2,187	2,349	2,461
Ending balance - loans individually evaluated for impairment	3,396		3,396		3,635
Ending balance - loans collectively evaluated for impairment	515,411		515,411		482,274
Allowance balance associated with loans individually evaluated for impairment	0		0		0
Allowance balance associated with loans collectively evaluated for impairment	2,187		2,187		2,461
Consumer Loans [Member]
Allowance for credit losses [Roll Forward]
Beginning balance	19	22	20	24	24
Provision (credit) for loan losses	0	1	(1)	0
Charge-offs	0	(1)	0	(2)
Recoveries	1	0	1	0
Ending balance	20	$ 22	20	$ 22	20
Ending balance - loans individually evaluated for impairment	0		0		0
Ending balance - loans collectively evaluated for impairment	2,336		2,336		1,590
Allowance balance associated with loans individually evaluated for impairment	0		0		0
Allowance balance associated with loans collectively evaluated for impairment	$ 20		$ 20		$ 20

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ALLOWANCE FOR LOAN LOSSES, Impaired Real Estate Loans (Details) - Real Estate Loans [Member] - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
Unpaid Principal Balance [Abstract]
With no allocated reserve		$ 12,097		$ 12,097		$ 9,605
With an allocated reserve		0		0		0
Recorded Investment [Abstract]
With no allocated reserve	[1]	12,097		12,097		9,561
With an allocated reserve	[1]	0		0		0
Reserve Balance Allocated within the Allowance for Loan Losses [Abstract]
With no allocated reserve		0		0		0
With an allocated reserve		0		0		0
Average Recorded Investment [Abstract]
With no allocated reserve		10,621	$ 11,909	10,268	$ 12,767
With an allocated reserve		0	0	0	1,833
Interest Income Recognized [Abstract]
With no allocated reserve		110	121	235	228
With an allocated reserve		0	0	0	97
One- to Four-Family Residential, Including Condominium and Cooperative Apartment [Member]
Unpaid Principal Balance [Abstract]
With no allocated reserve		414		414		635
With an allocated reserve		0		0		0
Recorded Investment [Abstract]
With no allocated reserve	[1]	414		414		598
With an allocated reserve	[1]	0		0		0
Reserve Balance Allocated within the Allowance for Loan Losses [Abstract]
With no allocated reserve		0		0		0
With an allocated reserve		0		0		0
Average Recorded Investment [Abstract]
With no allocated reserve		399	602	465	603
With an allocated reserve		0	0	0	0
Interest Income Recognized [Abstract]
With no allocated reserve		7	11	41	23
With an allocated reserve		0	0	0	0
Multifamily Residential And Residential Mixed Use Allowance [Member]
Unpaid Principal Balance [Abstract]
With no allocated reserve		3,930		3,930		983
With an allocated reserve		0		0		0
Recorded Investment [Abstract]
With no allocated reserve	[1]	3,930		3,930		983
With an allocated reserve	[1]	0		0		0
Reserve Balance Allocated within the Allowance for Loan Losses [Abstract]
With no allocated reserve		0		0		0
With an allocated reserve		0		0		0
Average Recorded Investment [Abstract]
With no allocated reserve		2,451	985	1,962	1,081
With an allocated reserve		0	0	0	0
Interest Income Recognized [Abstract]
With no allocated reserve		25	31	38	46
With an allocated reserve		0	0	0	0
Commercial Mixed Use Real Estate [Member]
Unpaid Principal Balance [Abstract]
With no allocated reserve		4,357		4,357		4,345
With an allocated reserve		0		0		0
Recorded Investment [Abstract]
With no allocated reserve	[1]	4,357		4,357		4,345
With an allocated reserve	[1]	0		0		0
Reserve Balance Allocated within the Allowance for Loan Losses [Abstract]
With no allocated reserve		0		0		0
With an allocated reserve		0		0		0
Average Recorded Investment [Abstract]
With no allocated reserve		4,367	4,393	4,360	4,395
With an allocated reserve		0	0	0	0
Interest Income Recognized [Abstract]
With no allocated reserve		44	44	88	88
With an allocated reserve		0	0	0	0
Commercial Real Estate [Member]
Unpaid Principal Balance [Abstract]
With no allocated reserve		3,396		3,396		3,642
With an allocated reserve		0		0		0
Recorded Investment [Abstract]
With no allocated reserve	[1]	3,396		3,396		3,635
With an allocated reserve	[1]	0		0		0
Reserve Balance Allocated within the Allowance for Loan Losses [Abstract]
With no allocated reserve		0		0		0
With an allocated reserve		0		0		$ 0
Average Recorded Investment [Abstract]
With no allocated reserve		3,404	5,929	3,481	6,688
With an allocated reserve		0	0	0	1,833
Interest Income Recognized [Abstract]
With no allocated reserve		34	35	68	71
With an allocated reserve		0	0	0	97
Construction [Member]
Average Recorded Investment [Abstract]
With no allocated reserve		0	0	0	0
With an allocated reserve		0	0	0	0
Interest Income Recognized [Abstract]
With no allocated reserve		0	0	0	0
With an allocated reserve		$ 0	$ 0	$ 0	$ 0

[1] The recorded investment excludes accrued interest receivable and loan origination fees, net, due to immateriality.

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INVESTMENT AND MORTGAGE-BACKED SECURITIES, Major Categories of Securities Owned (Details) $ in Thousands	3 Months Ended			6 Months Ended
	Jun. 30, 2016 USD ($) Security		Jun. 30, 2015 USD ($)	Jun. 30, 2016 USD ($) Security		Jun. 30, 2015 USD ($)	Dec. 31, 2015 USD ($)
Investment securities held-to-maturity [Abstract]
Recorded amortized/historical cost	$ 5,319			$ 5,319			$ 5,242
Fair value	6,805			6,805			7,051
Available-for-sale securities [Abstract]
Fair value	3,837			3,837			3,756
Proceeds from the sales of trading securities	3,648			3,648		$ 1,337
Gross gains recognized on sale of trading securities	3			3
Gross losses recognized on sale of trading securites	$ 45			$ 45
Proceeds from sale of investment securities available-for-sale			$ 2,000			2,070
Gross gain recognized on sale of investment securities available for sale			4			4
Gross loss recognized on sale of investment securities available for sale			$ 8			$ 8
Number of TRUP securities deemed have OTTI | Security	5			5
Number of TRUP securities not deemed have OTTI | Security	2			2
Pooled Bank Trust Preferred Securities ("TRUPS") [Member]
Available-for-sale securities [Abstract]
Securities weighted average term to maturity	18 years 6 months
Registered Mutual Funds [Member]
Available-for-sale securities [Abstract]
Purchase amortized/historical cost	$ 4,011			$ 4,011			3,990
Recorded amortized/historical cost	4,011	[1]		4,011	[1]		3,990	[2]
Unrealized gains	20			20			25
Unrealized losses	(194)			(194)			(259)
Fair value	3,837			3,837			3,756
Pass Through MBS Issued by GSEs [Member]
Available-for-sale securities [Abstract]
Purchase amortized/historical cost	392			392			418
Recorded amortized/historical cost	392	[1]		392	[1]		418	[2]
Unrealized gains	14			14			13
Unrealized losses	0			0			0
Fair value	$ 406			406			431
All Mortgage Backed Securities available for sale [Member]
Available-for-sale securities [Abstract]
Securities weighted average term to maturity	11 years 6 months
Pooled Bank Trust Preferred Securities ("TRUPS") [Member]
Investment securities held-to-maturity [Abstract]
Purchase amortized/historical cost	$ 15,326			15,326			15,344
Recorded amortized/historical cost	5,319	[1]		5,319	[1]		5,242	[2]
Unrealized gains	1,955			1,955			2,154
Unrealized losses	(469)			(469)			(345)
Fair value	6,805			6,805			7,051
Unamortized portion of the unrealized loss amount recognized	$ 781			$ 781			$ 807

[1] Amount represents the purchase amortized / historical cost less any OTTI charges (credit or non-credit related) previously recognized. For the TRUPS, amount is also net of the $781 unamortized portion of the unrealized loss that was recognized in accumulated other comprehensive loss on September 1, 2008 (the day on which these securities were transferred from available-for-sale to held-to-maturity).

[2] Amount represents the purchase amortized/historical cost less any OTTI charges (credit or non-credit related) previously recognized. For the TRUPS, amount is also net of the $807 unamortized portion of the unrealized loss that was recognized in accumulated other comprehensive loss on September 1, 2008 (the day on which these securities were transferred from available-for-sale to held-to-maturity).

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INVESTMENT AND MORTGAGE-BACKED SECURITIES, Reconciliation of Pre-Tax OTTI Charges Recognized (Details) - Pooled Bank Trust Preferred Securities ("TRUPS") [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
OTTI Credit and Non-Credit Losses Recognized in Earnings and AOCI [Roll Forward]
Cumulative pre-tax balance at the beginning of the period	$ 9,261	$ 9,356	$ 9,295	$ 9,514
Accretion (Amortization) of previously recognized OTTI	(34)	9	(68)	(149)
Cumulative pre-tax balance at end of the period	9,227	9,365	9,227	9,365
Credit Related OTTI [Member]
OTTI Credit and Non-Credit Losses Recognized in Earnings and AOCI [Roll Forward]
Cumulative pre-tax balance at the beginning of the period	8,691	8,795	8,717	8,945
Accretion (Amortization) of previously recognized OTTI	(26)	(26)	(52)	(176)
Cumulative pre-tax balance at end of the period	8,665	8,769	8,665	8,769
Non-Credit Related OTTI [Member]
OTTI Credit and Non-Credit Losses Recognized in Earnings and AOCI [Roll Forward]
Cumulative pre-tax balance at the beginning of the period	570	561	578	569
Accretion (Amortization) of previously recognized OTTI	(8)	35	(16)	27
Cumulative pre-tax balance at end of the period	$ 562	$ 596	$ 562	$ 596

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INVESTMENT AND MORTGAGE-BACKED SECURITIES, Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Registered Mutual Funds [Member]
Available-for-Sale Securities, Fair Value [Abstract]
Less than 12 Months Consecutive Unrealized Losses	$ 371	$ 3,026
12 Months or More Consecutive Unrealized Losses	3,121	0
Total	3,492	3,026
Available-for-Sale Securities, Gross Unrecognized/Unrealized Losses [Abstract]
Less than 12 Months Consecutive Unrealized Losses	8	259
12 Months or More Consecutive Unrealized Losses	186	0
Total	194	259
Pooled Bank Trust Preferred Securities ("TRUPS") [Member]
Held-to-Maturity Securities, Fair Value [Abstract]
Less than 12 Months Consecutive Unrealized Losses	0	0
12 Months or More Consecutive Unrealized Losses	2,255	2,359
Total	2,255	2,359
Held-to-Maturity Securities, Gross Unrecognized/Unrealized Losses [Abstract]
Less than 12 Months Consecutive Unrealized Losses	0	0
12 Months or More Consecutive Unrealized Losses	469	345
Total	$ 469	$ 345

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DERIVATIVES AND HEDGING ACTIVITIES, Classification on Consolidated Statements of Financial Condition (Details) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2016 USD ($) DerivativeInstrument	Jun. 30, 2016 USD ($) DerivativeInstrument
Fair Value of Derivative Financial Instruments [Abstract]
Weighted average pay rates	1.24%	1.24%
Weighted average receive rates	0.64%	0.64%
Weighted average maturity		5 years 9 months 25 days
Designated as Hedging Instrument [Member]
Fair Value of Derivative Financial Instruments [Abstract]
Count | DerivativeInstrument	4	4
Notional amount	$ 90,000	$ 90,000
Fair value assets	0	0
Fair value liabilities	957	957
Interest Rate Products [Member] | Designated as Hedging Instrument [Member]
Fair Value of Derivative Financial Instruments [Abstract]
Hedge ineffectiveness	$ 0	$ 0
Count | DerivativeInstrument	4	4
Notional amount	$ 90,000	$ 90,000
Fair value assets	0	0
Fair value liabilities	$ 957	$ 957

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DERIVATIVES AND HEDGING ACTIVITIES, Effect on Consolidated Statements of Income (Details) - Interest Rate Products [Member] - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2016
Interest Expense [Member]
Gain (Loss) on Derivative Financial Instruments [Abstract]
Amount of gain or (loss) reclassified from OCI (effective portion)	$ (41)	$ (41)
Non-Interest Expense [Member]
Gain (Loss) on Derivative Financial Instruments [Abstract]
Amount of gain or (loss) recognized (ineffective portion)	0	0
OCI [Member]
Gain (Loss) on Derivative Financial Instruments [Abstract]
Amount of gain or (loss) recognized (effective portion)	$ (998)	$ (998)

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DERIVATIVES AND HEDGING ACTIVITIES, Offsetting of Derivative Liabilities (Details) $ in Thousands	Jun. 30, 2016 USD ($)
Offsetting Derivative Liabilities [Abstract]
Fair value of derivative liability, including accrued interest	$ 997
Counterparty A [Member]
Offsetting Derivative Liabilities [Abstract]
Gross amounts of recognized liabilities	957
Gross amounts offset in the statement of financial condition	0
Net amounts of assets presented in the statement of financial condition	957
Gross amounts not offset in the statement of financial condition, financial instruments	0
Gross amounts not offset in the statement of financial condition, cash collateral received	0
Net amount	$ 957

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FAIR VALUE OF FINANCIAL INSTRUMENTS, Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Financial Liabilities [Abstract]
Impaired loans measured at fair value	$ 0	$ 0
Recurring [Member]
Trading securities (Registered Mutual Funds) [Abstract]
Domestic Equity Mutual Funds	787	1,053
International Equity Mutual Funds	207	281
Fixed Income Mutual Funds	5,820	8,867
Registered Mutual Funds [Abstract]
Domestic Equity Mutual Funds	1,244	1,253
International Equity Mutual Funds	374	383
Fixed Income Mutual Funds	2,219	2,120
Pass-through MBS issued by GSEs	406	431
Financial Liabilities [Abstract]
Derivative - interest rate product	957
Recurring [Member] | Level 1 Inputs [Member]
Trading securities (Registered Mutual Funds) [Abstract]
Domestic Equity Mutual Funds	787	1,053
International Equity Mutual Funds	207	281
Fixed Income Mutual Funds	5,820	8,867
Registered Mutual Funds [Abstract]
Domestic Equity Mutual Funds	1,244	1,253
International Equity Mutual Funds	374	383
Fixed Income Mutual Funds	2,219	2,120
Pass-through MBS issued by GSEs	0	0
Financial Liabilities [Abstract]
Derivative - interest rate product	0
Recurring [Member] | Level 2 Inputs [Member]
Trading securities (Registered Mutual Funds) [Abstract]
Domestic Equity Mutual Funds	0	0
International Equity Mutual Funds	0	0
Fixed Income Mutual Funds	0	0
Registered Mutual Funds [Abstract]
Domestic Equity Mutual Funds	0	0
International Equity Mutual Funds	0	0
Fixed Income Mutual Funds	0	0
Pass-through MBS issued by GSEs	406	431
Financial Liabilities [Abstract]
Derivative - interest rate product	957
Recurring [Member] | Level 3 Inputs [Member]
Trading securities (Registered Mutual Funds) [Abstract]
Domestic Equity Mutual Funds	0	0
International Equity Mutual Funds	0	0
Fixed Income Mutual Funds	0	0
Registered Mutual Funds [Abstract]
Domestic Equity Mutual Funds	0	0
International Equity Mutual Funds	0	0
Fixed Income Mutual Funds	0	0
Pass-through MBS issued by GSEs	0	0
Financial Liabilities [Abstract]
Derivative - interest rate product	0
Fair Value, Measurements, Nonrecurring [Member]
Financial Liabilities [Abstract]
Assets measured at fair value	$ 0	$ 0

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FAIR VALUE OF FINANCIAL INSTRUMENTS, Balance Sheet Groupings (Details) - USD ($) $ in Thousands	Jun. 30, 2016	Dec. 31, 2015
Assets [Abstract]
Investment securities held to maturity (TRUPS)	$ 6,805	$ 7,051
Carrying Amount [Member]
Assets [Abstract]
Cash and due from banks	89,927	64,154
Investment securities held to maturity (TRUPS)	5,319	5,242
Loans, net	5,190,208	4,678,262
Accrued interest receivable	14,896	13,486
FHLBNY capital stock	52,814	58,713
Liabilities [Abstract]
Savings, money market and checking accounts	2,745,744	2,325,463
Certificates of Deposit ("CDs")	1,034,522	858,847
Escrow and other deposits	92,290	77,130
FHLBNY Advances	1,017,125	1,166,725
Trust preferred securities payable	70,680	70,680
Accrued interest payable	2,156	2,259
Fair Value [Member]
Assets [Abstract]
Cash and due from banks	89,927	64,154
Investment securities held to maturity (TRUPS)	6,805	7,051
Loans, net	5,213,167	4,722,803
Accrued interest receivable	14,896	12,664
Liabilities [Abstract]
Savings, money market and checking accounts	2,745,744	2,325,463
Certificates of Deposit ("CDs")	1,043,354	865,581
Escrow and other deposits	92,964	77,130
FHLBNY Advances	1,026,682	1,170,274
Trust preferred securities payable	69,973	69,973
Accrued interest payable	2,156	2,259
Fair Value [Member] | Level 1 Inputs [Member]
Assets [Abstract]
Cash and due from banks	89,927	64,154
Investment securities held to maturity (TRUPS)	0	0
Loans, net	0	0
Accrued interest receivable	0	0
Liabilities [Abstract]
Savings, money market and checking accounts	2,745,744	2,325,463
Certificates of Deposit ("CDs")	0	0
Escrow and other deposits	92,964	77,130
FHLBNY Advances	0	0
Trust preferred securities payable	0	0
Accrued interest payable	0	0
Fair Value [Member] | Level 2 Inputs [Member]
Assets [Abstract]
Cash and due from banks	0	0
Investment securities held to maturity (TRUPS)	0	0
Loans, net	0	0
Accrued interest receivable	2	19
Liabilities [Abstract]
Savings, money market and checking accounts	0	0
Certificates of Deposit ("CDs")	1,043,254	865,581
Escrow and other deposits	0	0
FHLBNY Advances	1,026,682	1,170,274
Trust preferred securities payable	69,973	69,973
Accrued interest payable	2,156	2,259
Fair Value [Member] | Level 3 Inputs [Member]
Assets [Abstract]
Cash and due from banks	0	0
Investment securities held to maturity (TRUPS)	6,805	7,051
Loans, net	5,213,167	4,722,803
Accrued interest receivable	14,894	13,467
Liabilities [Abstract]
Savings, money market and checking accounts	0	0
Certificates of Deposit ("CDs")	0	0
Escrow and other deposits	0	0
FHLBNY Advances	0	0
Trust preferred securities payable	0	0
Accrued interest payable	$ 0	$ 0

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RETIREMENT AND POSTRETIREMENT PLANS (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended		12 Months Ended
		Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Dec. 31, 2015
BMP, Employee And Outside Director Retirement Plans [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost		$ 0	$ 0	$ 0	$ 0
Interest cost		343	343	686	687
Expected return on assets		(383)	(414)	(766)	(828)
Curtailment gain	[1]			0	0
Unrecognized past service liability		0	0	0	0
Amortization of unrealized loss		428	480	858	959
Net periodic cost (gain)		388	409	778	818
Postretirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost		0	0	0	9
Interest cost		16	29	32	538
Expected return on assets		0	0	0	0
Curtailment gain	[1]			0	(3,394)
Unrecognized past service liability		(2)	0	(4)	0
Amortization of unrealized loss		(1)	(13)	(2)	(25)
Net periodic cost (gain)		13	$ 16	26	$ (2,872)
Estimated employer contributions or benefit payments						$ 116
Contributions by employer		17		50
Employee Retirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Contributions by employer		7		11
BMP Retirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Estimated employer contributions or benefit payments						686
Contributions by employer		0		0
Outside Director Retirement Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Estimated employer contributions or benefit payments						$ 208
Contributions by employer		$ 41		$ 82

[1] The Postretirement Plan was amended effective March 31, 2015, whereby future retirees will not be eligible to participate in the plan. This plan amendment resulted in a curtailment gain.

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INCOME TAXES (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
INCOME TAXES [Abstract]
Effective tax rates	42.20%	40.90%	42.20%	40.60%
Gain on sale of real estate	$ (4)	$ 0	$ 68,183	$ 0

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PREMISES HELD FOR SALE (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Apr. 14, 2016	Dec. 31, 2015
PREMISES HELD FOR SALE [Abstract]
Premises held for sale with aggregate recorded balance	$ 1,379		$ 1,379			$ 8,799
Net gain on the sale of premises held for sale	$ (4)	$ 0	$ 68,183	$ 0
Aggregate purchase price under purchase and sale agreement					$ 12,300